Multinational banking and financial services company HSBC is using the Polygon ID protocol to build a decentralized identity solution (DID) that will allow it to securely verify its customers.
Ben Chodroff, head of HSBC's lab, has announced that the London-based multinational is using Polygon's decentralized identity protocol, Polygon ID, to create a new DID system that will allow it to manage the secure verification of your customers and, at the same time, streamline the entire process.
Chodroff presented a prototype of his new DID system during Hong Kong FinTech Week, highlighting Polygon ID’s ability to integrate with the bank’s public and private ledgers.
HSBC presented a DID prototype
During his presentation, Chodroff emphasized that his clients, from government agencies and credit agencies, to telecommunications and utility companies, will be able to take advantage of the new Self-sovereign, private, decentralized Web3 identity solution to simplify and streamline traditional online identity verification processes. In addition, he stressed that this identity can be reused to offer other products and services.
According to Chodroff, HSBC's DID solution will not only be used to streamline identity verification and management and facilitate account opening, but also to "prove eligibility or complete a transaction," manifested.
By leveraging Polygon ID technology, the bank can ensure the security, privacy and interoperability of identity data, as well as facilitate access to financial services and other products.
Through this DID solution, HSBC will be able to make it easier for its customers to open internal accounts based on Polygon ID, streamlining the Know Your Customer (KYC) verification process to issue a verifiable credential to each customer, which can be used for various identity-based transactions, from accessing accounts at HSBC, to making purchases, applying for loans, obtaining credit and more.
A solution to improve confidence in your products
Digital identity is one of the key challenges for the future of the Internet.
According to the developers at Polygon Labs, the current web relies on centralized systems that store and control our personal data, which poses huge risks to privacy and security. However, the next generation of the web, known as Web3, proposes an identity solution based on decentralization, where Each user can create and manage their own digital identity without intermediaries.
This vision is attracting the attention of a number of companies in the technology and financial industries, including HSBC.
The corporation, which is one of the largest banking and financial institutions in the world, is exploring the possibilities of DID, through Polygon ID, to improve its customers' experience and trust in its services.
During his presentation, Chodroff highlighted that one of the factors that prompted the multinational banking company to adopt Polygon ID was its compatibility with the open identity standard. World Wide Web Consortium (W3C), in addition to the possibility of integrating with the bank's public and private networks.
In addition to self-sovereign decentralized identity, HSBC is also exploring tokenization on the blockchain.
What is Polygon ID?
Polygon ID is an identity protocol that focuses on privacy, decentralization, and user data sovereignty. Project developers can leverage this solution to facilitate the exchange of verifiable credentials, which are backed by zero-knowledge (ZK) proofs.
This self-sovereign decentralized identity protocol was introduced in March 2022 as an innovation that will align its users with the decentralized spirit and privacy of Web3.
Continue reading: What are the 13 projects being built on Polygon CDK?
