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Polymath Implements Identity Verification on Polymesh with Fractal ID Integration

By Polymath

Fractal’s comprehensive KYC/AML verification software lets users across jurisdictions onboard quickly and compliantly to Polymath’s new purpose-built blockchain for security tokens. 

The blockchain technology provider for digital securities Polymath has integrated Fractal’s identity verification software Fractal ID with Polymesh, an institutional-grade permissioned blockchain created by Polymath specifically for regulated assets. 

Securities issuance and transfer requires a known identity, but most blockchains are built for pseudonymity. Fractal ID takes every Polymesh user through a KYC/AML process that ensures all actors on the chain are verified, and all transactions are authored by known entities. The tight integration between Polymesh and Fractal ID enables fast and accurate user onboarding, and lays a foundation for compliance with securities regulations across jurisdictions.

The Polymesh blockchain offers two layers of identity check—the first layer controls access to the blockchain and the second, managed by the issuer or their agent, controls access to the specific asset. Fractal will be powering the first layer and issuers can work with Fractal or an alternate KYC provider of their choice for the second.   

"Polymesh uses its unique identity system to securely and confidentially tie every action back to a single  real-world identity, while allowing individual users to preserve their privacy and separate their holdings across multiple digital representations of themself" said Thomas Borrel, Chief Product Officer at Polymath. "This kind of identity framework is required to comply with securities regulations but is very difficult to manage on general-purpose blockchains. With Fractal ID powering the customer due diligence process that grants users access to the chain, we’re able to offer a promising solution to a significant industry issue."

Fractal ID, created by Berlin-based company Fractal, provides a quick and efficient user onboarding process for regulated industries with global user bases. It uses technology such as OCR, liveness detection and facial recognition for quick verification of national IDs and passports. Fractal ID is designed to meet bank-level KYC/AML regulatory standards and makes compliance with GDPR and protection of personal data top priorities, without sacrificing user experience.  

"Our mission with Fractal ID is to enable trusted relationships between people and organizations across borders based on reliable and verifiable information," said Julian Leitloff, CEO of Fractal. "Compliance and convenience shouldn't be trade-offs and we’re excited to be working alongside Polymath to solve challenges with managing identity on the blockchain in a scalable way for issuers, investors, and other market participants." 

Currently in testnet, the Polymesh blockchain is purpose-built for security token issuance, transfer, and management. It streamlines antiquated processes and opens the door to new financial instruments by solving challenges around identity, compliance, confidentiality, and governance through key design principles built into the base layer of the chain. 

In addition to powering onboarding to the blockchain, Fractal will be a KYC provider within Polymath’s Service Provider Ecosystem, which includes custody agents, broker-dealers, legal firms, cap table management providers, and others who can help users create and manage their token. Unlike many closed systems, issuers using Polymath technology can work with any providers they choose, but those in the ecosystem offer already-integrated technology and often a faster path to go-live. Fractal is able to provide issuers with the specific identity verification checks to layer in based on their specific asset and jurisdiction. 

In advance of the Polymesh launch, users can access the chain by participating in the Alcyone testnet. Testnet does not involve real assets.

 

About Fractal

Fractal ID is a user-centric KYM/AML platform specifically built for Finance 3.0 services including blockchain fintechs – internationally compliant, easy to integrate and with a conversion rate of 40 per cent above market average. Fractal was founded in 2017 in Berlin and holds additional offices in Porto and Singapore, where it has completed the German Accelerator Southeast Asia programme. The company received US$3 million in venture funding with participation from Coparion, a VC fund backed by the German government. Visit https://www.trustfractal.com/ for more information.

About Polymath

Polymath makes it easy to create, issue, and manage security tokens on the blockchain. More than 200 tokens have been deployed using our Ethereum-based solution and we are now in the midst of launching Polymesh, an institutional-grade blockchain built specifically for regulated assets. It streamlines antiquated processes and opens the door to new financial instruments by solving the inherent challenges with public infrastructure around identity, compliance, confidentiality, and governance.

Watch this 2-minute demo to see the process of issuing a token on our new purpose-built blockchain, Polymesh, in action, or visit https://polymath.network to learn more.

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