Sign Protocol and Plaid Are Pioneering Open Banking Onchain

Proofs.Money, powered by Plaid and Sign Protocol, is revolutionizing open banking by extending it with blockchain technology. This cross-domain solution bridges the gap between Fintech and blockchain, allowing users to generate unified financial reports and details that can be used in both onchain and offchain contexts.

By combining the robust features of traditional financial solutions and the trailblazing advancements of DeFi, Proofs. Money unlocks the benefit of a Unified Financial Identity for users across Web2 and Web3. This integration enables bank account balances and transactions to be verifiably represented onchain via attestations, allowing for consumers to gain more control and flexibility over their financial data.

Open banking has revolutionized the financial services sector by enhancing transparency and accessibility. The evolution has enabled the creation of convenient digital banking services, such as personalized budgeting tools, subscription management, and improved credit scoring systems. These innovations not only enrich consumer experiences but also open new avenues for business innovations.

Building on this foundation, the partnership between Plaid and Sign Protocol takes open banking a step further by bridging traditional financial systems with blockchain technology.This partnership introduces the innovative concept of 'Unified Financial Identity.' By merging comprehensive offchain financial data from traditional finance (TradFi) with onchain data from decentralized finance (DeFi), this new approach heralds a significant advancement in financial services. It paves the way for smarter DeFi activities and more sophisticated DeFi applications, such as undercollateralized loans, by leveraging rich, verifiable data insights from both onchain and offchain sources—ranging from bank account details to yields from blockchain assets. 

Key Benefits of Proofs.Money:

• DeFi applications can leverage unified financial profiles to offer better rates and benefits, attracting consumers from the traditional banking sector to the DeFi space.
• With the real-time transactions notification enabled, Proofs.Money is able to generate onchain attestations via Sign Protocol to show the validity of certain transactions
• Consumers can establish and own a unified financial identity onchain, gaining access to new financial benefits and opportunities, enhanced trust, and creditworthiness within the DeFi ecosystem and beyond.
• Real-world asset (RWA) projects can better optimize their infrastructure and offerings by integrating more real-world consumer financial data, allowing for more robust and secure applications.

Access to Plaid’s Infrastructure:

With over 100 million users, 8,000+ digital finance apps and services, and connections to 12,000+ financial institutions across 17 countries, all powered by Plaid’s infrastructure, this collaboration is undoubtedly set to kick off a Cambrian Explosion of new applications and facilitate a vibrant transition of users from the traditional finance (TradFi) domain to the decentralized finance (DeFi) landscape.

Sign Protocol – The Generalized Attestation Layer:

Sign Protocol, a generalized attestation protocol developed by EthSign, offers a comprehensive suite of tools and infrastructure for globally verifying various types of information. With over 1.3 million attestations and live deployments across multiple blockchains, including Base, Polygon, and Scroll, among others, Sign Protocol aims to solidify its position as the primary data attestation layer within the authentication and verification sector of the crypto industry, while continuing to expand its reach to the world at large.

Upcoming Developments:

The pilot of Proofs.Money will debut on the Base L2, with rollouts planned across Sign Protocol’s extensive blockchain networks.

About Sign Protocol:

Sign Protocol is a generalized attestation protocol with a vision to become the global authentication and verification system that allows users and business to sign everything, with no limits.

About Plaid:

Plaid simplifies the secure connection of financial accounts with fintech services, ensuring ease of access and security for users.

For more information, contact us via email at [email protected]

This post is commissioned by EthSign and does not serve as a testimonial or endorsement by The Block. This post is for informational purposes only and should not be relied upon as a basis for investment, tax, legal or other advice. You should conduct your own research and consult independent counsel and advisors on the matters discussed within this post. Past performance of any asset is not indicative of future results.