Knabu cryptocurrency startup is testing the possibility of transferring regulatory reporting on regulatory acts for UK banks on the Factom blockchain.
According to a statement, the company launched a 30-day pilot project this week. Knabu founder and CEO Gabrielle Patrick said:
“The purpose of the pilot project is to demonstrate the benefits of the blockchain, in particular, as the main infrastructure for the bank. The average regulatory compliance cost for a bank is about 30% of its budget. As a company specializing in blockchain, we felt that it was necessary to demonstrate features that could change that. ”
Compliance costs for banks are high due to the large number of human processes. Knabu will conduct KYC, KYB and AML checks, as well as encrypt data and send it to Factom, which creates data chains and then stores them in the Bitcoin and Ethereum blockchains.
“We want to avoid repeating the same KYC, KYB and AML checks. Traditional banks do not have the same flexibility in terms of data access, ”said Hakim Mamoni, CTO and co-founder of Knabu.
Knabu CEO noted that the company is interested in servicing small and medium-sized enterprises, as well as in working with fintech startups. So, IdentityMind will carry out KYC and KYB checks, while DMG Blockchain will use Blackseer and Walletscore analytical blockchain tools to conduct a comprehensive legal audit of AML.
As part of a pilot project, Knabu is exploring ways in which financial institutions can digitize regulatory reporting. In the future, the company also plans to test the Factom blockchain for reporting capital reserves.
“The goal is to get rid of inefficiencies and provide services to those companies that need them. Many sectors suffer from a lack of such services because their cost is too high, ”Patrick said.
In early September, it became known that Factom blockchain start-up is participating in the US Government-funded testing of national power grid protection technology. Recall also that in August last year Factom patented a system for protecting confidential data on the blockchain.
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