NFT
The neobank Cogni has announced that it is rolling out soul-bound non-fungible tokens with Know Your Customer (KYC) information to holders of its crypto wallet. The Polygon-based NFT will transfer customers’ “Web2” KYC verification, performed by the bank at account opening, to a Web3 environment.
Cogni, which has coverage from the US Federal Deposit Insurance Corporation through a traditional bank in New York, introduced its non-custodial multichain crypto wallet in January. Users can send, receive and hold cryptocurrencies and NFTs in the wallet. Users can optionally mint the non-transferable soulbound NFT, which decentralized apps (DApps) can then decrypt with owner permission.
The bank’s intention is to create an enhanced user experience. Cogni founder and CEO Archie Ravishankar told Cointelegraph:
“The reason why the crypto-curious haven’t really been able to jump on the bandwagon of decentralization is, of course, user experience. The second is trust in the ecosystem.”
“Everyone knows how to use digital banking,” Ravishankar added. The crypto wallet is available “during the normal banking experience”.
Related: Vitalik Buterin Suggests Making NFTs ‘Soulbound’ Like World of Warcraft Items
The “bank level” KYC information in the NFT complies with United States KYC requirements and will be available to collaborating DApps without further action. Cogni envisions creating a marketplace of DApps that can be connected with just a few clicks, including KYC verification.
Cogni: Barclays-backed challenger bank wants to disrupt financial services 2020 https://t.co/fkVVab7W77 pic.twitter.com/yMaSFwdQj9
— CoinnewsBest (@CoinnewsB) March 11, 2020
The use of non-custodial wallets has increased after the bankruptcies of major crypto companies during the crypto winter trapped customers’ funds in their custodial wallets. The Cogni soulbound NFT will be available to select users initially and is expected to be open to the public in the summer.
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