A-Team Insight Blogs

SETL Launches Verafide Digital Credentials Platform for KYC, Other Verification Challenges

Blockchain operator SETL’s Verafide subsidiary has launched its open-source platform for verifying digital credentials and identification on the SETL enterprise blockchain, allowing issuers, holders and verifiers to set up and maintain a digital credentials ecosystem. The Verafide platform is aimed at helping firms fulfill their KYC obligations, adopt more seamless and transparent customer onboarding processes and share legal documentation.

More broadly, Verafide has been designed to help entities as they prepare for emerging rules from governments and regulators around digital identities. A new version of the UK government’s ‘digital identity and attributes trust framework’, for instance, is expected by the end of the summer, with legislation being considered later in the year, and the EU has announced plans for its own ‘trusted and secure digital ID’, with a ‘common toolbox’ scheduled for introduction in 2022.

According to Anthony Culligan, Verafide Advisor and Chief Engineer at SETL, the Verafide technology was developed to address the anticipated rise in demand for verification of digital credentials across multiple industries, after the company won an Innovate UK competition last summer and was awarded funding to finance its solution.

As well as obvious applications around KYC and sharing of legal documents, Verafide could be used in financial services to address sanctions screening and compliance, and verify identities at each step of complex overseas payments work flows.

Verafide aims to bring together digital identity and verified credentials into one digital wallet that puts the owner in full control of what happens with their personal information. Portable certificates can be passed between the holder and verifier like a digital passport, without the need to share details of interactions or transactions with the original ‘issuer’ of IDs, so personal information remains protected. Financial institutions seeking to deploy Verafide could adopt a single ‘company wallet’ administered by the company secretary or other officer of the company, or issue individual wallets to executives with specific permissions that match their authority.

The platform creates and maintains personal, secure digital certificates that prove a fact, a right or a qualification – combined with an integrated payment solution to allow organisations to commercialise their issuance, with practical application in KYC investigation and due diligence as well as wider sharing of legal documentation. The Verafide computer code has been open-sourced in compliance with Government best-practice policy for public sector use. Issuers’ identities and public keys as well as other information that allows verification of the digital certificates are maintained on the SETL blockchain.

SETL is a London-based technology provider whose distributed ledger technology (DLT) solutions are used in financial markets, asset management and payments. SETL’s technology underpins several operational regulated financial market infrastructures, including the Central Securities Depository ID2S and the fund distribution platform IZNES. SETL recently completed the world’s first Central Bank Digital Currency (CBDC) live fund transaction in collaboration with Banque de France using the blockchain that powers the IZNES fund distribution platform.

Verafide’s core functionality is open-source.  Verafide offers an open-source SDK for the developer community, and is compliant with the global W3C Verifiable Credentials Standard. Its enterprise solution is delivered as SaaS and includes a ‘payment-for-credential’ functionality. The Verafide App can be downloaded from the iTunes and Google app stores.

Related content

WEBINAR

Recorded Webinar: Data management for ESG requirements

Environmental, Social and Governance (ESG) investing is moving into the mainstream, requiring asset managers to develop ESG strategies that deliver for both the firm and its investors. While these strategies can outperform those that do not include ESG factors, there is no clear route to success in an immature market that is only just beginning...

BLOG

ESGi – an Element22 and Agility Sciences Solution – Offers Buy-Side Firms Trusted ESG Data Updated in Real Time

Data consultancy Element22 and distributed ledger developer Agility Sciences have released ESGi, an innovative solution designed to solve problems of ESG data, such as time lags and accuracy, and provide buy-side firms with trusted data in real time. The release coincides with the first deadline of the EU’s Sustainable Finance Disclosure Regulation (SFDR), which comes...

EVENT

Data Management Summit USA Virtual

Now in its 11th year, the Data Management Summit USA Virtual explores the shift to the new world where data is redefining the operating model and firms are seeking to unlock value via data transformation projects for enterprise gain and competitive edge.

GUIDE

Entity Data Management Handbook – Seventh Edition

Sourcing entity data and ensuring efficient and effective entity data management is a challenge for many financial institutions as volumes of data rise, more regulations require entity data in reporting, and the fight again financial crime is escalated by bad actors using increasingly sophisticated techniques to attack processes and systems. That said, based on best...