First in Japan! Announcement of Know Your Customer (KYC) Personal Identity System Co-Development: Regtech: High Technology Meets Fintech
Rakuten Securities, Inc. (President: Yuji Kusunoki, hereafter Rakuten Securities) and Soramitsu Co., Ltd. (CEOs: Makoto Takemiya and Ryu Okada; hereafter, Soramitsu) announce that they are working together to develop a KYC [1] system using blockchain technology [2].
Recently, complying with KYC requirements has posed many problems for financial institutions. To help comply with KYC regulations, Rakuten Securities and Soramitsu are developing a system using secure blockchain technology. The present work is exploring the possibilities of using blockchain technology for practical use in KYC and related systems.
Rakuten Securities is looking to maintain a safe environment where customers can feel secure making transactions, while using blockchain technology to create new and innovative services.
Soramitsu is providing the blockchain technology and identity know-how to create innovative services for Rakuten Securities customers.
Both companies are looking to contribute to the Japanese economy by promoting the introduction of safe and secure blockchain technology.
◆Trademark Disclaimer
The product names mentioned in this release are the property of their respective owners.
[1] Know Your Customer (KYC) is a regulatory requirement that financial institutions have for verifying the identity of their customers (usually with the goal of preventing illegal activity and money laundering).
[2] Blockchain and Distributed Ledger Technology (DLT) are software systems that provide a protocol for value transfer over the Internet.
About Rakuten Securities
Rakuten Securities was established in March 1999, as Japan’s first online securities business. It is now a major player, with over 2 million customer accounts. Through a diverse product line-up and innovative, customer-centric services, including the company’s own MARKETSPEED trading tool and smartphone app iSPEED, Rakuten Securities strives to help individual investors structure their portfolios and to provide the best possible trading environment. In addition, Rakuten Securities also offers services that utilize the strengths of the Rakuten Group, including reward point programs that can also be used for shopping through Rakuten Ichiba, and tie-ups with Rakuten Bank and Rakuten Card.
Trade Name: Rakuten Securities, Inc. Financial Instruments Business Operator License: Kanto Local Finance Bureau No. 195 and Commodity Futures Business Operator Association Memberships: Japan Securities Dealers Association, The Financial Futures Association of Japan, The Commodity Futures Association of Japan, Type II Financial Instruments Firms Association, Japan Investment Advisers Association.
About Soramitsu
Soramitsu is a Japanese fintech company founded in February of 2016, focusing on blockchain and distributed ledger technology. Currently, Soramitsu is developing a platform for managing digital identities. Since identity management is required for many disparate services, building a digital identity platform on blockchain technology is an important way to manage identity for applications involving many different players. In addition to bringing its proprietary identity management solution to the project, Soramitsu is also a member of the Linux Foundation’s Hyperledger project. The Hyperleder project aims to create global standards for blockchain and distribution ledger technology, with the aim of providing practical solutions for businesses and meeting the needs of society.
【Explanation of Commission Fees and Risks】
When investing in products handled by Rakuten Securities, customers may be required to pay commission fees and expenses specific to particular products. Also, losses may occur due to such factors as fluctuations in the market price of products and other associated risks. Regarding the commissions and risks involved for each product, please obtain a sufficient understanding by reading Commission Fees and Risks Involved in Investments on the Rakuten Securities website, the prospectuses provided prior to the signing of agreements, and related documents.
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