New York-based financial institution, Neobank Cogni, has added soul-bound NFT verification to the KYC process for its recently launched crypto wallet. For the bank’s customers, the NFTs will store the KYC information they provided during signup, but presented in a Web3 environment.
The move comes four months after Neobank launched its noncustodial multichain crypto wallet that allows users to send, receive, and hold cryptocurrencies and NFTs. It is this wallet that will be used to mint the nontransferable soul-bound NFTs, which will hold the users’ KYC information that can be shared with dApps subject to the holder’s consent.
According to Archie Raviskankar, founder and CEO of Cogni, the goal is to offer clients an improved user experience. In a statement, he notes, “The reason why the crypto-curious have not really been able to jump on the decentralization bandwagon is, one, obviously, the user experience. The second is trust in the ecosystem.”
.@getcogni has deployed their groundbreaking Web3 Passport #onPolygon 🌐
The benefit is simple: facilitating mass adoption by bringing KYC compliance from Web2 👉🏾 Web3.
More ➡️ https://t.co/kme9C7CQrn pic.twitter.com/SXdiqXuuuE
— Polygon (Labs) (@0xPolygonLabs) April 27, 2023
Why Neobank Opted for Soulbound NFTs
Soul-bound NFTs represent blockchain assets that allow holders to prove ownership over an item, whether physically or digitally. They are non-transferable, which makes them ideal for managing permanent records.
In Neobank’s case, they will hold “bank-level” KYC information that is in line with US regulators. This information will be used to access partnering dApps without having the user go through the process over and over again. In the future, Cogni aims to create a marketplace of DApps that will tap into these soul-bound NFTs for user KYC information with a few clicks.
The soul-bound tokens will initially be available to a select few members, before opening up to the public in the summer.
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Basil is an avid fan of blockchain technology and all its innovations, and he is passionate about sharing this narrative with his audience. He has spent over five years in the crypto space, specializing in research and creating Web3 content for various media outlets around the globe.
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