It is evident blocking technology has a big role to play in the world of digital services. Cambridge Blockchain, a company focusing on using distributed ledgers for digital identity services, raised US$2m from several partners to build out their new platform. Another validation of blockchain-based concepts, as investors feel 2017 will be a critical year for this industry.

Successful Fund Raising for Cambridge Blockchain

With the US$2m in funding secured, the Cambridge Blockchain team can accelerate the deployment of their digital identity enterprise software. As one would expect, this platform is of great appeal to financial institutions all over the world, as onboarding new customers needs to be digitized sooner rather than later. With Digital Currency Group and Partech Ventures helping the company close their US$2m convertible note last night, it is time to accelerate the rollout of this platform.

Compliance challenges in the financial sector are changing rapidly. It becomes more difficult for financial service providers to keep up with these changes, mostly due to the growing costs associated with KYC requirements. Large banks pay hundreds of millions of dollars every year to meet know-your-customer costs these days. Moreover, the strict privacy rules limit the options to access validated customer records from other trusted parties.

With Cambridge Blockchain’s new digital identity solution, the challenges associated with privacy and transparency will no longer be an issue for any financial institution. Moreover, the overall KYC costs will be reduced to a minimum, and customers will have an easier time rebuilding the trust relationship with their bank. Right now, that trust factor is at an all-time low in most parts of the world.

Digital Currency Group CEO Barry Silbert stated:

“In today’s world, managing identities across applications and platforms is becoming increasingly challenging and cumbersome, and high profile data hacks have highlighted the vulnerability of these systems. We are excited to see Cambridge Blockchain working to build blockchain-based technology to collect and share identity data across organizations in a safe, secure, and transparent manner that protects users while offering efficiency to institutions.”

The name Cambridge Blockchain is well-known to blockchain enthusiasts all over the world. The company made headlines by winning the BBVA Open Talent 2016 and Santander InnoVentures Distributed ledger Challenge. Commercial deployment of their blockchain-based digital identity platform is scheduled for the second half of 2017, albeit no specific date has been announced at this time.

Header image courtesy of Shutterstock

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