Citi and Goldman Jump into Blockchain: Global KYC Solutions!

Traditional Finance Expands Blockchain Investment! The Importance of Global KYC Solutions!

Just a few years ago, blockchain in traditional finance was largely considered a "technology to watch with interest." However, since 2020, the situation has dramatically changed.

Global major banks like Citigroup, Goldman Sachs, and JP Morgan Chase have begun directly investing in blockchain startups, with Japan's SBI Group and Mitsubishi UFJ Bank following suit.

From 2020 to 2024, a total of 345 blockchain companies worldwide received investments, with 33 of them securing over $100 million. Investment areas primarily focus on trading infrastructure, Real World Asset (RWA) tokenization, custody, and payment solutions.

This isn't just an investment in a 'new technology'; it's a movement to reconstruct existing financial infrastructure on a blockchain basis. For example, Brazil's Cloudwalk secured $750 million in total funding with investment from the traditional financial institution Banco Itaú, and Germany's Solaris joined the global financial network through a massive investment from the SBI Group.

Blockchain is no longer just a 'Fintech experimental technology'; it has taken center stage in preparing the next standard for global finance.

What Traditional Finance's Blockchain Investment Means

Banks already hold a virtual monopoly on international remittance networks like SWIFT and global payment networks. For example, most transactions when we send money overseas pass through the SWIFT network.

However, if blockchain-based payment networks become widely used in the future, remittance and payment speeds can increase, and fees can decrease. This could reduce the competitiveness of existing bank networks. Therefore, banks adopted the strategy of "investing and preempting the technology before a threat arrives."

Another important change is the regulatory environment. Recently, the 'Stablecoin Regulation Act' in the U.S. and the 'Markets in Crypto-Assets (MiCA)' regulation in the EU have been implemented, making regulations increasingly clear. For banks, clearer regulation means a 'reduction in uncertainty'! Since banks are inherently structured and equipped to comply with regulations, they can enter the market much more favorably as laws become clearer.

Finally, the growth potential of the Real World Asset (RWA) tokenization market is significant. BCG and Ripple project this market to grow to approximately $18 trillion by 2033. RWA tokenization refers to creating assets like bonds, real estate, and commodities as 'tokens' on a blockchain for trading. A bank's core strength is safely securing customer assets and building trust. Therefore, the blockchain-based tokenization market is a golden opportunity for banks to extend their existing strengths and generate new revenue.

What Should Blockchain Companies Prepare For?: eKYC Solutions!

The market entry of traditional finance can be both an opportunity and a crisis for blockchain startups. What are the opportunities?

• Global Financial Network Connection: Cooperation with banks allows immediate connection to financial infrastructure worldwide.

• Stable Capital Inflow: Large financial institutions provide long-term, stable investment capital.

• Increased Reliability: A partnership with a bank inherently creates an image of a 'verified company.'

However, the barrier to entry may also rise.

Regulatory Compliance

To work with banks, it is mandatory to meet global AML (Anti-Money Laundering) and KYC (Know Your Customer) regulations. Especially when operating services in multiple countries, a 'regulation-adaptive infrastructure' is needed to reflect the legal and regulatory differences of each nation. Failure to have this will exclude a company from collaboration with large financial institutions.

Security and Audit Capability

Banks demand regular security audits and a thorough data protection system. While this is a heavy burden for startups, failing to meet these standards means exclusion from projects involving large-scale funds or transactions.

Technology Integration and Scalability

Financial institutions prefer APIs/SDKs that can easily link with existing core banking systems. If this is not considered from the start, the burden of re-development at the partnership stage will increase significantly.

The Answer Provided by ARGOS: 'Regulation and Trust' in One Go

ARGOS simultaneously offers global regulatory compliance and high-trust identity verification, enabling blockchain companies to leap forward to meet the standards of traditional finance.

• Global Coverage: Verification of IDs/passports from over 195 countries, customized authentication policy settings based on each nation's regulatory requirements.

• AI-Based Security: Combines Face ID and document OCR to detect identity theft, multiple accounts, and fraudulent users.

• Ultra-Fast Integration: Immediate linkage with financial institutions and platforms is possible with an API/SDK that can be applied to the service within one day.

• Operational Efficiency: Real-time policy changes and monitoring maximize operational efficiency by up to 300%.

Now that traditional finance is entering the blockchain market, what blockchain companies need is not just technology, but a partner equipped with regulatory compliance, security, and trust.