Knabu Crypto Project and Factom to Trial Blockchain Compliance Automation

Payments company Knabu plans to pilot Factom’s blockchain for streamlining bank regulatory reporting

A cryptocurrency startup named Knabu, has recently started a new banking pilot using Factom in the United Kingdom. According to reports, Factom is one of the earliest blockchains to be created for enterprises.

Knabu is focused on payments and “smart deposits”. The company has the goal of helping other financial companies to diminish the risks of their operations and to use the blockchain to improve the quality of the services. Right now, Knabu is trying to get a banking license with the local regulators, which would solidify its position as a local banking institution.

During a recent interview with Coindesk, the CEO of Knabu, Gabrielle Patrick, affirmed that the startup is launching its pilot today and that the project is set to last for 30 days. The purpose of the test, she explained, is to provide banks with the efficiencies that only the blockchain can bring to the table.

Right now, banking costs can be quite high when it comes to compliance. The company is trying to solve this problem by offering blockchain-based Know Your Customer (KYC) solutions and Anti-Money Laundering (AML) solutions. All the data would be encrypted using the system and stored on the Ethereum and Bitcoin blockchains, which are public immutable ledgers.

Patrick has affirmed that she is focused on solving the problems of small and medium banks, as they are likely to be underserved with the technology. It is not easy to create your own blockchain solution, so they believe that they can help.

The CEO of Knabu has finished by affirming that all of the work so far has been in line with what is expected by the U. S. Financial Conduct Authority and that the company is studying hard how to create a fully regulated service.