Parallel Identity Token Brings KYC/AML Compliance to Web3
NEW YORK, Sept. 7, 2022 /PRNewswire/ — Parallel Markets, an identity infrastructure company, announces the launch of the Parallel Identity Token, the first-ever regulatorily compliant KYC/AML solution for Web3.
The PID Token is a fully on-chain, non-transferable identity token that preserves the Web3 principles of decentralized anonymity while confirming critical aspects of a wallet owner’s identity. The PID Token never stores or displays any Personal Identifying Information (PII), but does contain necessary information to assure market participants that their counterparties do not have a history of fraud and are not subject to sanctions.
The PID Token is supported by a regulatorily compliant KYC/AML process and indicates:
- whether the owner is a natural person or business entity
- that the owner has submitted information necessary to complete a KYC/AML review
- that the owner is not currently sanctioned and is being monitored for new sanctions.
The PID Token can even assert the owner’s 506(c) investor accreditation status. The token can interact directly with smart contracts, which can in turn require all parties to hold a valid PID Token as a condition of participation. In keeping with industry best practices for document renewal, all PID Tokens are monitored for one year against sanctions lists (such as OFAC), after which time token-holders must reconfirm their identity details and wallet ownership.
The PID Token is currently live on Ethereum and is available to be minted at: https://app.parallelmarkets.com/identity-token
Parallel’s co-founder and CEO, Tony Peccatiello, says “Building a robust identity solution to support the expansion of Web3 is something we have cared about for a long time — we’re very excited to launch the Parallel Identity Token with our partners.”
One of those partners is decentralized credit platform Goldfinch, whose co-founder Mike Sall said, “Parallel has been an excellent partner for our KYC/AML and accreditation verification needs, fulfilling a core utility for our network’s participants. We’re excited that solutions are continuing to develop in this space and look forward to seeing what Parallel builds with the PID Token.”
Buildspace partnerships lead Farhaj Mayan also shared his thoughts on the PID Token launch: “I think the most epic thing about on-chain KYC is it brings a lot of trust to on-chain actions for legacy institutions that want to take advantage of composable identity … That’s the fundamental change in the world we’ll need to actually gain significant adoption for Web3.”
About Parallel Markets: Parallel Markets is an identity infrastructure company serving over 75 financial institutions across the Web2 and Web3 ecosystems. Parallel closed its Series A with Union Square Ventures in December 2021.
FAST FACTS
About Parallel Markets
- Parallel has been focused on portable, reusable identity for over 3 years and is in a unique position to support on-chain identity and compliance
- Raised Series A from Union Square Ventures, Lux, Eniac, Comcast and others in December 2021
- Parallel currently works with dozens of traditional financial institutions and Web3 projects doing onboarding and KYC/AML and Accreditation checks
About the PID Token
- Created by Parallel Markets
- Non-transferable (soulbound) NFT
- Currently live on Ethereum
- Never stores or displays PII on-chain
- Only stores key elements of identity and verification on-chain:
- Natural person or business entity
- KYC & AML check
- Sanctions results (and sanctions monitoring 1 year from minting)
- US vs Non-US for Reg S purposes
- 506(c) Accreditation verification
- Use cases:
- DeFi protocols:
- By using an on-chain KYC credential such as the PID token, a DeFi project can be confident that no value is flowing to or from sanctioned parties — all within Web3 and without directly collecting any PII
- Decentralized exchanges:
- Parties can establish a KYC requirement (PID token) when structuring swap contracts
- DAO governance:
- DAOs can restrict membership, voting and distributions to wallets with a valid KYC credential (PID token)
- NFT marketplaces
- Marketplaces can restrict NFT visibility to wallets with a KYC credential (PID token)
- Marketplaces can restrict bids to sellers or buyers holding a KYC credential (PID token)
- Cryptocurrency exchanges
- Cryptocurrency exchanges could choose to only accept Eth from wallets with a KYC credential (PID token)
OUR LAUNCH PARTNERS
Suzanne Elovic
President & Head of Partnerships
[email protected]
SOURCE Parallel Markets Inc.
