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Neobank launches soulbound NFTs for the KYC data of wallet holders

Neobank launches soulbound NFTs for the KYC data of wallet holders

The small neobank in New York wants to improve the experience of crypto users by combining Web3 features with digital banking.

The neobank Cogni recently stated that it will provide soulbound nonfungible tokens comprising Know Your Customer (KYC) information to its cryptocurrency wallet holders. The Polygon-based NFT will transition into a Web3 environment the “Web2” KYC verification performed by the bank upon account opening.

Cogni’s noncustodial multichain crypto wallet came out in January. It is backed by the US Federal Deposit Insurance Corporation through a regular New York bank. The wallet lets users send, receive, and keep cryptocurrencies and NFTs. Users can choose to mint the non-transferable soulbound NFT, which decentralized apps (DApps) can then decrypt with the owner’s approval.

The bank aims to enhance the user experience

Cogni founder and CEO Archie Ravishankar said: “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.” “Everybody knows how to use digital banking,” however, Ravishankar added. The crypto wallet is available “in the course of the normal banking experience.”

The “bank-level” KYC information on the NFT is enough to satisfy KYC standards in the US, and collaborating DApps will have access to it without having to do anything else. Cogni plans to make a marketplace of DApps that can be linked to with just a few clicks, including KYC verification.

The use of non-custodial wallets has been rising after the bankruptcies of major crypto firms during the crypto winter trapped customers’ money in their custodial wallets.

The Cogni soulbound NFT will initially be made available to a limited number of users. In the summer, it should be open to everyone.

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