After one year of fruitful collaboration between Coinfirm and RSK Platform, the two have now further cemented their partnership with a new deal. Notably, RSK and RIF Platforms are now integrated with Coinfirm-backed DeFi AMLT Oracle to provide regulatory clearance without compromising the security aspect of the ecosystem.
According to the company, all operations on the RSK protocol will be covered with an automated proprietary risk assessment from Coinfirms’ C-score, which is based on over 270 red flag algorithms.
As a result of the new collaboration, the RSK network stands a better chance of convincing institutional investors particularly the traditional financial sector to join the DeFi ecosystem.Â
The decentralized financial sector has tremendously grown especially fueled by the pandemic. Most DeFi projects have scaled to billion-dollar valuations despite not having a significant portion of institutional investors on board.
The RSK protocol was established to help Bitcoin scale further without compromising the security aspect. Notably, the RSK ecosystem helps add Bitcoin’s utility by enabling smart contracts and also near-instant payment with the help of SmartBitcoins (SBTC).
“The RSK smart contract network has been able to make the digital gold of Bitcoin become a more impactful, viable currency. RIF’s DeFi stack aids the underbanked and with the support of Coinfirm’s DeFi AMLT Oracle, the network can counter malicious threats more efficiently and keep in compliance with regulators. The evolution of this partnership, how both firms are exploring the DeFi sphere, is a mirror image of the industry as a whole embracing decentralized finance,” said Paweł Kuskowski, Coinfirm CEO and co-founder.
On the other hand, RSK Co-founder and IOVlabs CEO Diego Gutierrez Zaldivar noted that the partnership between Coinfirm’s DefI AMLT Oracle and RSK Platforms will significantly bolster Bitcoin adoption. “The integration of Coinfirm’s DeFi AMLT Oracle to the RSK platforms adds another important building block to the Open Financial Ecosystem on Bitcoin. DeFi for Bitcoin has been gaining momentum and this integration will enable this market to flourish in a secure and compliant manner protecting individual investors, institutions, and other participants in the market,” said Zaldivar.
Navigating the crypto industry and the entire blockchain ecosystem through the regulatory process is a key aspect that hinders institutional investors’ adoption.
However, RSK Network through the partnership with Coinfirm aims to make it much easier through automated technology. According to Coinfirm, the traditional financial system not only failed to combat AML practices but also facilitated terrorism around the world. As a result, the company is focused on using the vast crypto ecosystem to not only facilitate AML/CTF compliance but also help grow the industry to the next level.
