Announced September 7, 2017, Cambridge Blockchain will create Cambridge Blockchain SAS, a Paris-based accelerator subsidiary housed in the Partech Shaker startup campus, to rapidly deploy digital identity compliance for European financial institutions.
Cambridge Blockchain is the first company outside of Luxembourg to join Infrachain a.s.b.l. (association sans but lucrative), a consortium with a goal of addressing rising regulatory compliance costs. Infrachain also has the distinction of being a member of the Enterprise Ethereum Alliance, having joined in May of 2017, as reported by ETHNews. According to the announcement, global banking institutions have spent over $321 billion in fines alone since the financial crisis in 2007-2008, in addition to $270 billion in annual compliance spending. Growing compliance costs relative to KYC regulations can impact large financial institutions to the tune of $500 per year, while European General Data Protection Regulations can impede profits, potentially fining institutions up to 20 million euros or 4 percent of annual revenues. By utilizing blockchain technology to navigate this tumultuous landscape, Cambridge Blockchain can deliver resolution to "competing challenges of transparency and privacy, resulting in faster customer onboarding, lower costs, and enhanced compliance through a single, trusted and consistent view of customer reference data."
CEO of Cambridge Blockchain Matthew Commons provides details:
"Thanks to the support of Partech Ventures and Infrachain, we are positioned to tackle the banking industry’s greatest threat: the cost of regulatory compliance. It’s exciting to consider how our technology not only aligns with our European partners, but serves as a catalyst to solve some of the most complex regulatory challenges facing financial institutions.”
On the partnership between Infrachain and Cambridge Blockchain, Marco Houwen, project lead of Infrachain, stated:
“We are very proud to have Cambridge Blockchain join Infrachain as we create a pan-European community accelerating the adoption of Blockchain technology. Infrachain acts as an orchestration platform between blockchain applications and a European network of independent certified nodes. We look forward to bridging the gap between the not-yet-compliant public blockchains and the centralized regulatory environment.”
“We are pleased to see Cambridge Blockchain launch its European operations just a few months after our investment,” said Romain Lavault, general partner at Partech Ventures, as he explained the company's strategy for European markets. “Thanks to our ‘Europe Made Easy’ support program for foreign entrepreneurs, the Partech Shaker is the perfect place to hire top employees, connect with a highly international startup ecosystem and do business with major corporates from all industries.”
Navigating the complicated jigsaw puzzle of regulation can be difficult, but blockchain technology may reveal a means to avoid running afoul of regulators while promoting adherence to compliance measures through automated protocols for large financial institutions, thanks to the combined efforts of Infrachain a.s.b.l. and partners.