In an effort to improve its crypto user experience, Neobank is introducing Soulbound NFTs with KYC information for its wallet holders. 

Cogni, a neobank, has stated that it will distribute soulbound nonfungible tokens holding Know Your Customer (KYC) information to crypto wallet customers. CCustomers’ “Web2” KYC verification performed by the bank at account opening will be transferred to a Web3 environment by the Polygon-based NFT.

After the bankruptcies of major crypto firms, including Celsius and Voyager Digital, during the crypto winter trapped customers’ money in their custodial wallets, the use of non-custodial wallets has increased. 

Likewise, Cogni, insured by the Federal Deposit Insurance Corporation through a regular New York bank, launched its noncustodial multichain crypto wallet in January. Users can use the wallet to transmit, receive, and store bitcoins and NFTs. 

Also Read: Apple Dives Deeper Into Banking By Launching A High-Yield Savings Account

Users can optionally mint the nontransferable soulbound NFT, which can then be decrypted with the owner’s consent by decentralized programs (DApps). However, The Cogni soulbound NFT will initially be available to a small group of users before becoming available to the general public in the summer.

While telling Cointelegraph how the bank will help create an improved user experience for the users with this non-custodial wallet, Cogni’s founder and CEO Archie Ravishankar said: 

“The reason why the crypto-curious have not really been able to jump on the decentralization bandwagon is one, obviously, the user experience. The second is trust in the ecosystem.”

“However,” Ravishankar remarked, “everyone knows how to use digital banking.” The crypto wallet is available “during the normal banking experience.”

The “bank-level” KYC information included on the NFT satisfies KYC requirements in the United States and will be available to partnered DApps without further action. Cogni plans to provide a marketplace of DApps that can be connected to, including KYC verification, with a few clicks.

Also Read: Uniswap Mobile Wallet App Free From Apple Jail And Live On IOS

More About Cogni: 

Cogni is a neobank established in the United States that offers Personal accounts, as well as a debit card, with all transactions managed via an iPhone or Android app. Cogni now accepts citizens of the United States to open mobile bank accounts.