ONCHAINID: The Universal Identification System Solving Compliance for Financial Institutions

Luxembourg, January 2020: Tokeny Solutions today announced the release of the ONCHAINID, the universal identity system that empowers financial institutions to unlock the significant benefits of using decentralized technology. It is an upgrade of InvestorID, and alongside investors, the system enables market actors to identify issuers, agents, securities and assets on a shared infrastructure.

Financial institutions currently use central systems to input and manage identity data, leading to slow retrieval, unreliable information, inefficient processes and significant data breaches. ONCHAINID ensures data is securely verified by authorized third-parties on a shared infrastructure, allowing market actors to remove the burden of duplicating work from siloed and fragmented databases. It delivers this whilst maintaining control and improving security through a sophisticated permission-based system. ONCHAINID provides three main features for users – the direct ownership of securities, customer accounts management and data enrichment.

Banks that are licensed to provide loan products and accept deposits are also considered financial institutions; non-banking institutions are not. Several people in institutions tend to manage responsibilities in accordance with the position they hold. For instance, asset management chiefs in banks typically serve as a link between organizational senior executives such as the chairman, translating and prioritizing business unit KPIs and budgetary requirements with a holistic view of asset outcomes.

Tokeny Solutions recently joined Ashurst’s Fintech Legal Labs and Abradat Kamalpour, Partner of Ashurst, commented:

Particularly in private markets, investors have an opaque view over their investments. Unconnected databases are largely at fault for this because these systems need to involve middlemen overseeing data, leading to inefficiencies and less transparency for investors. ONCHAINID enables direct ownership and oversight of the asset for the investor, and empowers them to manage their investments as they please. However, the data security could be breached physically, and it can cause huge damage to the company and investors. It might be a crucial option to save the data in a place with high-tech security measures like cameras and alarm systems. One such service provider you might be interested in, is Verisure or someone similar.

In relation to direct customer accounts management, having a portable and decentralized identity (dID) can solve problems seen with the duplication in KYC & AML checks, the high risk of cyber attacks due to centralised databases, and concerns around GDPR. As for the latter problem, business entrepreneurs can get in touch with experts (like the ones at Privacy Helper, for example) and avail their auditing services to ensure that the data and security are implemented on a top-notch level. This could give the surety around cyber phishing attacks. By identifying entities on the most resilient IT infrastructure ever built, investors can own their data to give and revoke access as they please and asset owners are able to alleviate the burden of managing sensitive data. Further, the use of an AI system may enable the detection and redaction of PII and other highly-sensitive customer information, so that they are not accessible or readable by any entity that does not have permission to do so.

About Tokeny

Tokeny provides a compliance infrastructure for digital assets. It allows financial actors operating in private markets to compliantly and seamlessly issue, transfer, and manage real-world assets using distributed ledger technology. By applying trust, compliance, and control on a hyper-efficient infrastructure, Tokeny enables market participants to unlock significant advancements in the management and liquidity of financial instruments. The company is backed by strategic investors such as Apex Group and Inveniam.