Massachusetts-based Cambridge Blockchain on Thursday announced the formation of a new European subsidiary, based at the Partech Shaker startup campus in Paris. In addition, the company is also the first outside of Luxembourg to join the Infrachain blockchain initiative.
The new company, Cambridge Blockchain SAS, will serve to accelerate European deployments of the company’s digital identity compliance software for financial institutions.
In announcing the expansion, Cambridge Blockchain noted that the world’s largest banks have paid more than $321 billion in fines since the financial crisis. In addition, compliance spending now exceeds $270 billion per year, and a single large bank alone can spend up to $500 million.
The company’s distributed architecture aims to resolve the competing challenges of transparency and privacy, ultimately looking to expedite customer onboarding, lower costs, and enhance compliance through a single, trusted and consistent view of customer reference data.
Joining the nonprofit Infrachain Asbl will help further those goals, expanding the Luxembourg government-backed organization into France. Infrachain Asbl is working to bridge the gap between not-yet-compliant public blockchains and the centralized regulatory environment.
“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,” Cambridge Blockchain Chief Executive Matthew Commons said. “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.”
The moves represent the company’s latest steps in a push into the European market. Earlier this year, Cambridge Blockchain announced at OWI’s K(NO)W Identity Conference thatit partnered with LuxTrust S.A. to create a new privacy-protecting European identity platform.
Prior to that, in February, it raised $2 million in venture capital from Partech Ventures and Digital Currency Group. Its new office in Paris’s Partech Shaker will take advantage of the Partech Ventures “Europe Made Easy” program for foreign entrepreneurs, general partner Romain Lavault said.