Spring Labs Addresses Major Blockchain Regulatory Hurdle by Bringing Know Your Customer Tools and Credit Information to the DeFi/Blockchain Ecosystem
Spring Labs, a financial technology company transforming the exchange of sensitive data, today introduced a major innovation aimed at bridging the gap between the DeFi (decentralized finance)/blockchain world and the traditional financial services industry. With the introduction of this service, a major emerging hurdle for global regulators and financial institutions will be addressed – namely bringing identity and “Know Your Customer (KYC)” data on to the blockchain.
By bringing identity and ‘Know Your Customer’ (KYC) data onto the blockchain, Spring Labs’ new Ky0x service provides a low-friction mechanism for resolving participants’ identity on-chain in a way that can be accessed by smart contracts, while preserving investor/consumer privacy. Ky0x creates digital credit and identity passports, fully under the control of wallet owners, that not only address growing regulatory concerns but also power new use cases, such as unsecured credit.
“Making off-chain history an on-chain consumable represents a major leap forward for the blockchain/DeFi ecosystem,” said John Sun, CEO, Spring Labs. “Regulators and financial institutions are rightly demanding the ability to verify the identities of digital wallet holders in what is quickly approaching a 100-billion-dollar marketplace.”
Leveraging its partnership with new investor TransUnion, Spring Labs is now rolling out KYC/AML tools to power institutional-grade DeFi pools with enhanced compliance, effectively expanding access to digital assets as well as the scope of financial services products.
“We view this collaboration on Ky0x as vital and important. It effectively represents an opportunity to expand the universe of institutional participants as well as the breadth of available applications in the blockchain ecosystem,” said Steve Chaouki, President of U.S. Markets at TransUnion.
Chaouki added, “The underlying technology allows for both privacy and portability and is borne from a compliance mindset. We view this as a transformative innovation that will bridge the digital asset ecosystem with the regulated financial services industry, and we are thrilled to be a part of it.”
Ky0x is now available on the public testnet of the Ethereum blockchain and sidechain, Polygon.
For more information, please visit www.ky0x.com.
About Spring Labs
Spring Labs creates and oversees anonymous, decentralized data networks that vastly increase the amount, quality, and security of information available to market participants. Spring Labs leverages sophisticated cryptographic tools and blockchain technology to provide data and metadata integrity guarantees, tamper-evident workflows, and privacy-preserving tokenization that allow for the corroboration of information without the exchange of underlying data. These interlocking technologies help mitigate fraud, improve verification capabilities, and securely provide access to previously unavailable data in the financial services industry. Based in Marina Del Rey, California, Spring Labs was founded in 2017 by Adam Jiwan, John Sun, and Anna Fridman. Spring Labs investors include TransUnion, GreatPoint Ventures, August Capital, GM Ventures, and others. Learn more at www.springlabs.com.