Tokeny Solutions, an issuance and management platform for tokenized securities, today announced the release of the ONCHAINID, the universal identity system that empowers financial institutions to unlock the significant benefits of using decentralized technology.
This release is an upgrade of Tokeny’s InvestorID, and alongside investors, the system enables market actors to identify issuers, agents, securities and assets on a shared infrastructure.
Financial institutions currently use central systems to input and manage identity data, leading to slow retrieval, unreliable information, inefficient processes, and significant data breaches. ONCHAINID ensures data is securely verified by authorized third-parties on a shared infrastructure, allowing market actors to remove the burden of duplicating work from siloed and fragmented databases.
It delivers this whilst maintaining control and improving security through a sophisticated permission-based system. ONCHAINID provides three main features for users – the direct ownership of securities, customer accounts management and data enrichment.
Luc Falempin, CEO of Tokeny Solutions said:
“For financial institutions to move away from analog processes and step into the digital era, they need reliable and compliant standards. Most of the protocols created for digital securities failed to recognize that identity across the value chain is essential to apply compliance for the issuance and transfer of tokenized securities. ONCHAINID, and its open ecosystem, is the most credible solution to securely and accurately identify market players and their assets on the blockchain. To achieve our vision of digital capital markets, there needs to be a secure and institutional-grade system that enables the creation of digital identities for issuers, agents, investors, and securities. This is why we have created ONCHAINID, to bring forth a shared and controlled data-rich ecosystem that transforms traditional finance into a truly digital and connected industry.”
In relation to direct customer accounts management, having a portable and decentralized identity (dID) can solve problems seen with the duplication in KYC & AML checks, the high risk of cyber attacks due to centralized databases and concerns around GDPR.
By identifying entities on the most resilient IT infrastructure ever built, investors can own their data to give and revoke access as they please and asset owners are able to alleviate the burden of managing sensitive data.
Tokeny Solutions recently joined Ashurst’s Fintech Legal Labs and Abradat Kamalpour, Partner of Ashurst, commented:
“Of course, compliance remains key in digital security offerings. The rules and regulations do not change but the methods are beginning to move away from analogous functions into digitized processes. For this to succeed it starts with identity. We are keen to propose Tokeny’s solutions and ONCHAINID to our clients as a more efficient method of capital formation.Particularly in private markets, investors have an opaque view over their investments. Unconnected databases are largely at fault for this because these systems need to involve middlemen overseeing data, leading to inefficiencies and less transparency for investors. ONCHAINID enables direct ownership and oversight of the asset for the investor, and empowers them to manage their investments as they please.”