The blockchain platform, initially disclosed in February this year, has been structured to pave way for digitization of bank account, real-time banking operations and sharing of validated KYC data between regulatory authorities and financial organizations.
The Dubai headquartered DED and state-backed Emirates NBD informed that more than 120 firms have already joined the platform and their bank accounts have been linked as well.
It is not a wonder that Emirates NBD is the first bank to go live on the platform at the time of roll out.
The bank will basically join hands with SMEs (small and medium enterprises), assisting them to go digital.
The platform will also enable SMEs to open banks accounts instantaneously via Emirates NBD’s E20 Digital Business Bank.
During the initial phase of the venture, Dubai Economy shifted all valid trade licenses to the blockchain platform, representing over 40% of total trade licenses in the UAE.
The latest venture is backed by top domestic government organizations, including the Central Bank of UAE and Smart Dubai, the government-aided innovation office.
Furthermore, DED and Emirates NBD has stated that the platform will soon include several banks such as Commercial Bank of Dubai, HSBC, RakBank, and Abu Dhabi Commercial Bank.
Omar Bushahab, CEO of company registration and licensing division of DED, underlined that the UAE KYC Blockchain Platform is working to fulfill the government’s digitization aim. He stated:
“This marks a key milestone in establishing a UAE-wide ecosystem for KYC data sharing and instant digital onboarding of companies by financial institutions. It is in alignment with the government’s vision around digitization and paperless as crucial strategies that enable continuation and sustainability.”
In the past few years, UAE has turned out into a most sought out place for blockchain and crypto related ventures because of its friendly approach towards the budding technology.
Earlier in 2020, Abu Dhabi Islamic Bank has turned out to be the first Islamic bank to handle trade finance disbursement dealings utilizing blockchain technology.
Abu Dhabi Global Market, a well-recognized global financial centre and free zone, is also working to introduce cryptocurrency trading facility this year.