Why Decentralized Products Benefit from Know-Your-Customer: unFederalReserve integrates with Securitize iD
One of our core values at unFederalReserve is safety. Complying with U.S. regulations intended to protect investors and block money laundering or terrorist financing is central to that objective. A big way this is done is by financial institutions complying with “Know Your Customer” (KYC) identity verification processes–and it is increasingly clear DeFi providers will need to meet these requirements, too.
While many crypto enthusiasts are skeptical of (if not hostile to) centralization, there is now a way to operate in a decentralized world consistent with existing regulations.
That is possible through Securitize.
unFederalReserve + Securitize
We’ve teamed up with Securitize, a digital assets business that operates consistent with the U.S. regulatory framework, to quickly and easily onboard investors to our platform in a way that ticks the legally-required boxes.
Who is Securitize? Securitize is a digital asset securities firm with a mission to provide shareholders access to invest in and trade alternative investments, and for companies to raise capital, manage shareholders, and offer shareholders potential liquidity. Securitize has pioneered a fully digital, end-to-end platform for issuing, managing and trading digital asset securities, all consistent with the existing U.S. regulatory framework.
The core of Securitize’s platform is Securitize iD, a passport that is issued once a user’s identity has been verified and enables them to participate in Securitize’s investment opportunities or trading, as well as in DeFi opportunities. The verification process is completed a single time and the passport is permanent.
Some distinct benefits of Securitize iD include:
- Fast and Unique Verification: Securitize iD allows users to complete identity verification in a one-time process that can be carried out in minutes. They can then reuse their identity, ensuring consistency in their records and user satisfaction.
- KYC for Individuals: Securitize iD supports a high-grade investor KYC which includes selfie identity and government-issued photo identification (ID).
- Entity KYB: Securitize iD supports verification of businesses, complying with all the requirements of Knowing Your Business, including but not limited to, ultimate beneficial owners, organization incorporation documents, and KYC of legal signers.
- API First: Securitize iD can connect with any platform to integrate a KYC/KYB verification flow easily with any business’s current processes.
- Ongoing Monitoring — Nightly Screening: A nightly screening is conducted on all users that have been onboarded through Securitize iD. Users are screened against various domestic and foreign government sanction watchlists, including OFAC, European Union, Interpol, and more.
- Ongoing Monitoring — Documentation Review: Securitize iD keeps the user’s documentation valid and up to date by automatically prompting users to upload a new government-issued photo ID, should it expire.
Using the “Securitize Connect API”, we’re able to onboard users on our own site whilst having full control and oversight of our users and their activity on the products they’re using on our platform, specifically ReserveFunding, which involves “KYCing” users to access traditional investments with their digital assets liquidity.
Securitize is a digital asset securities firm with a mission to provide investors with access to invest in and trade alternative investments, and for companies to raise capital, manage shareholders, and offer shareholders liquidity. Securitize has pioneered a fully digital, end-to-end platform for issuing, managing and trading digital asset securities consistent with existing U.S. regulations, with over 200 businesses and 420,000+ investors already connected, and nearly $500 million in current-value digital asset securities issued on the Securitize platform. Securitize is comprised of Securitize, Inc. and its subsidiaries Securitize, LLC (an SEC-registered transfer agent), Securitize Capital, LLC, and Securitize Markets, LLC (an SEC-registered broker-dealer, member of FINRA and SIPC, and operator of the company’s alternative trading system, Securitize Markets). Learn more here.