The startup focuses on digital identity, even in privacy stringent jurisdictions with experience in sharing identity data across European financial institutions.
Other new participants in the funding round are Omidyar Network and Flourish (part of Omidyar Group). The original Series A round was in May last year with $7 million raised from Foxconn’s HCM Capital, Partech Partners, Future\Perfect Ventures and Digital Currency Group. That followed a $2 million seed round.
To date, Cambridge Blockchain has inked a few high profile deals according to The Paypers. One was with LuxTrust the state-supported group which provides bank identity solutions in Luxembourg. The other was with the IHTMarkit subsidiary KYC.com to complement existing KYC and AML checks.
According to Forbes, Cambridge Blockchain will use the Series A and extension funding on research and development, as well as expanding its workforce in Boston, Paris and Beijing — the latter with the view to develop a number of projects together with Foxconn.
How it works
Personal identity data isn’t stored on the blockchain itself. Instead, the blockchain stores an indecipherable hash which can’t be reversed to reveal any data. However, it acts as a fingerprint. So if the same data is shared with someone else, they can check if the “fingerprint” matches.
Consider if a customer provides identity documents to its bank, and they decide to open an account with another bank. The customer chooses to share the data with the second bank, and the second bank knows that the document has already been validated. The second bank is still responsible for their own KYC, but it starts the ball rolling much faster.
The solution stores the data in a “Personal Data Service” which interacts with a mobile app. That means the consumer can make decisions via the mobile app. However, the data is nonetheless stored on Cambridge Blockchain servers, even if they are bank-grade.
Did you Know
Back in March 2018, PayPal filed a patent for a “virtual currency transaction system,” designed to make digital currency payments faster. PayPal also claims to be one of the first companies to enable merchants to accept Bitcoin through partnerships with BitPay, GoCoin, and Coinbase.
Last year, the online payment system also partnered with Coinbase to bring instant PayPal withdrawals to all US customers.
PayPal’s co-founder, Luke Nosek, has latterly remarked that the firm had initially aspired to create a digital currency that would be independent from banks and governments, similar to crypto.
PayPal, whose active number of users surpassed 254 million in Q3 of last year, launched a blockchain-based reward system for its employees in December 2018.