ONCHAINID Notifications

Why is ONCHAINID Notification important?

Issuers who are issuing financial instruments have an obligation to identify their investors and confirm their eligibility for the instrument in question. As you know, our products support the issuers in those processes when they issue digital securities.

However, while an investor might be KYC’ed and qualified to subscribe in a security token at its issuance, their status in that respect might evolve and change during their period of holding. As a result, the issuer is required to KYC their investors on a regular basis or possibly whenever their investor’s personal information (e.g. country of residence) changes.

How does it work?

So far, for securities issued in traditional private markets, the process of keeping track of these changes in the status and information related to investors is generally quite a heavy, manual and lengthy process. Each counterparty is notified individually, if at all, creating significant risk exposure for issuers.

ONCHAINID Notifications brings efficiency to this process through the use of blockchain identities. Once an investor updates any of the personal information linked to their ONCHAINID profile, all the relevant parties that have previously KYC’ed the individual will be automatically alerted with a notification. The investor does not need to inform all issuers (or their Agent) of those changes. Consequently, as issuers have the most up-to-date information on their investors, they can act with the utmost confidence their investors remain eligible for their token.

What does it offer to issuers?