Major Banks, Regulators Trial 'Know Your Customer' App on R3's Corda

Around 40 participants have trialed a "self-sovereign" know-your-customer application that gives customers more control over their data.

AccessTimeIconJun 29, 2018 at 1:00 p.m. UTC
Updated Sep 13, 2021 at 8:07 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

A group of banks and regulators, including big names like BNP Paribas and Deutsche Bank, have conducted a trial of a know-your-customer (KYC) compliance application built upon R3's Corda blockchain platform.

The 39 participants put the app – built by New York-based tech firm Synechron – through a four-day test using 45 nodes in Microsoft Azure, according to a press release. Ultimately, the group managed to conduct over 300 transactions in 19 countries across eight timezones.

The app's self-sovereign design is aimed to allow firms' customers to build and maintain their own identities, as well as enable them to approve or reject access requests from banks. When customers updated their data in the test, this was automatically updated for any banks with access permission.

R3 said in the statement:

"Traditional KYC processes are complex and often duplicative. This self-sovereign model allows corporate customers to create and manage their own identities including relevant documentation and then grant permission to multiple participants to access this data"

According to R3, this can lead to improved efficiency and lower costs at financial institutions by "eliminating the need for each institution to individually attest and update KYC records." The model could also help avoid data privacy and security problems, since only parties with the need to see the data will have access to it, and only those with permission from the customer.

"Not only does this project demonstrate how blockchain can allow institutions to retain control of and manage their own identity," said David Rutter, CEO of R3, "but it also validates the design choices we made in our approach to privacy on Corda."

Also involved in the trial were ABN AMRO, Societe Generale, China Merchants Bank, ING, Raiffeisen and many more. Meanwhile, the regulators and central banks participating included the Central Bank of Colombia, the Federal Reserve of Boston and the Superintendency of Banking and Insurance of Peru.

Passport and bank cards image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.