HSBC, the global banking giant, has been successfully onboarded to the regional Know-Your-Customer (KYC)-focused private blockchain backed by Dubai‘s government.
HSBC is the first foreign bank to go live on the “UAE KYC Blockchain Platform,” which was established by the Dubai-based Department of Economic Development, dubbed “Dubai Economy,” and is the fourth founding member.
The UAE KYC Blockchain Platform is a nationwide ecosystem that allows licensing agencies and financial institutions in the UAE to exchange verifiable know-your-customer data.
HSBC’s entry to the platform allows investors to register an account with the international bank digitally using data that has already been confirmed by another bank via blockchain, according to Gulf News.
Omar Al Mehairi, director of development at Dubai Economy, complimented the platform for boosting efficiency and strengthening the UAE’s overall business climate, saying:
“The UAE KYC Blockchain Platform has transformed the investor bank account journey by significantly reducing the time it takes to establish relationships with banks. This will positively improve UAE’s ranking in the global Ease of Doing Business index.”
The technology, which was launched in February 2020, allows banks to reroute the process of identity verification, which can be time-consuming and costly when done the old way.
Emirates Islamic, Emirates NBD, Commercial Bank of Dubai, Abu Dhabi Commercial Bank, RAKBANK, and Mashreq Bank are among the major local banks and financial institutions that have joined the KYC Blockchain.
With Dubai at its center, the Middle East aims to become a digital finance hub.
The Dubai Financial Services Authority (DFSA) continued its attempts to build a uniform framework for cryptocurrency legislation in the city, according to Cointelegraph in March.
Authorities did, however, issue a warning in May about Dubai Coin, a cryptocurrency that claimed to be the “official digital money of Dubai” but was never approved.