The neobank Cogni has revealed that it will offer soulbound nonfungible tokens (NFTs) containing Know Your Customer (KYC) data to holders of its cryptocurrency wallet. The NFT, which will be based on the Polygon network, will transfer customers’ KYC verification, performed by the bank during account opening, into a Web3 environment.
Cogni, which has US Federal Deposit Insurance Corporation coverage via a traditional New York bank, launched its non-custodial multi-chain cryptocurrency wallet in January. Users can hold, send and receive cryptocurrencies and NFTs in the wallet. They may also choose to mint non-transferable soulbound NFTs, which decentralised apps (DApps) can decrypt with their owner’s permission.
The bank aims to create an improved user experience, according to Cogni founder and CEO Archie Ravishankar. “The reason why the crypto-curious have not really been able to jump on the decentralization bandwagon is, one, obviously, the user experience. The second is trust in the ecosystem,” he told Cointelegraph. However, he added that the crypto wallet is available “in the course of the normal banking experience”.
The NFTs contain “bank-level” KYC data that satisfies requirements in the US, and which will be available to partnering DApps without further action required. Cogni is creating a marketplace for DApps that can connect to its KYC verification with only a few clicks.
The launch of non-custodial wallets has surged since major crypto companies’ bankruptcies during the crypto winter led to customers’ money being trapped in their custodial wallets. The Cogni soulbound NFT will initially only be available to select users, with public availability expected in the summer.
Related: Vitalik Buterin suggests making NFTs ‘soulbound’ like World of Warcraft items
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