Los Angeles-based KYC-AML regulatory technology provider Netki is now working with blockchain technology provider Polymath to bring blockchain-specific identity verification to Polymesh, a permissioned blockchain purpose-built by Polymath for security tokens. The collaboration will help protect against fraudulent account creation while ensuring the onboarding process to the chain is easy and efficient for global users.
Most public blockchains were built for pseudonymity and find it difficult to comply with securities regulations around identity. Polymesh solves issues with public infrastructure through key design principles built into the chain’s core, providing for the first time a chain that is built from the ground-up to be compatible with capital market needs. Securities issuance and transfer requires a known identity, and Netki will assist the chain in meeting this need by providing Polymesh with a remote identity verification process purpose-built for blockchain.
Polymesh employs a 2-layer identity check to ensure that every action is tied securely and confidentially to a single real-world identity while preserving individual users’ privacy and enabling separation of their holdings across multiple digital representations. The first layer controls access to the blockchain while the second controls access to the specific asset, as managed by the issuer or their agent.
In addition to existing identity verification provider Fractal ID, users can complete the first layer of this identity check and onboard to Polymesh using Netki’s identity verification process. For the second layer, users can work with Fractal, Netki, or an alternate KYC provider of their choice. The multiplicity of options for identity verification helps to preserve the decentralized nature of the blockchain.
“Polymesh has been a clear leader in building the necessary infrastructure for the Security Token ecosystem,” says Justin Newton, Co-Founder and CEO of Netki. “We share…
