The first now-your-customer (KYC) blockchain data-sharing platform in Dubai is now live. The platform is launched by Mashreq Bank and Dubai International Financial Centre (DIFC).
The KYC blockchain data-sharing platform will help businesses in Dubai open a digital banking account instantly. This will be done by replacing the current paper-based KYC procedure with a blockchain-backed digital procedure.
The process involves DIFC creating a digital profile of the applicant and sending it immediately to Mashreq Bank through blockchain.
With regard to the launch of the KYC blockchain platform in Dubai, Arif Amiri, chief executive officer, DIFC Authority said in a statement, “As the leading financial centre in the MEASA region, we take great pride in continuously enhancing and evolving the DIFC ecosystem in order to provide a world-class environment for our partners and community to conduct business.”
He added, “This initiative provides financial institutions and businesses a platform in order to seamlessly undertake operations. As we enter a new period of growth and expansion, our core focus on fintech and blockchain are major steps on our journey towards transforming the future of finance.”
Reportedly, the network will use DIFC-incubated fintech firm Norbloc’s blockchain platform. While Gowling WLG drafted the legal agreements, Deloitte supported Mashreq with governance and program management.
The KYC platform is the newest blockchain-based initiative to be released as part of the UAE’s Emirates Blockchain Strategy 2021.
According to media reports, Dubai Economy (Department of Economic Development – Government of Dubai), along with Emirates NBD, Emirates Islamic, HSBC, RAKBANK, Abu Dhabi Commercial Bank (ADCB) and Commercial Bank of Dubai are in a blockchain-based consortium for sharing of verified KYC data between banks and licensing authorities in the UAE.