API3 and Open Bank Project Initiate a Ten-Year Development Partnership to Bridge Open Banking with Blockchains

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  • Open banking is a practice by which banks provide authorized third-party providers with access to banking data through the use of application programming interfaces (APIs)
  • It said that Open Bank Project is the one of the world’s largest open-source banking API initiatives with over 400 standardised APIs used by a community of over 11,000 developers

API3 has entered into a ten-year development partnership with Open Bank Project to connect over 400 banking and open banking APIs directly to blockchains via API3’s Airnode, all housed under open-source code. Open banking is a practice by which banks provide authorized third-party providers with access to banking data through the use of application programming interfaces (APIs).

Open banking is a practice by which banks provide authorized third-party providers with access to banking data through the use of application programming interfaces (APIs). The most well-known open banking initiative is the revised Payment Services Directive (PSD2) – an EU regulation passed in 2015 that requires banks to create mechanisms that enable third-party providers to work securely, reliably and rapidly with the bank’s services and data on behalf and with the consent of their customers.

“We are absolutely thrilled to work with API3 on enabling open banking on the blockchain,” said Simon Redfern, CEO, Open Bank Project. “Hopefully, this will serve as a framework for financial regulators to explore and create new standards and set the foundation for the blockchain economy to converge with banking-based digital offerings.”

It said that Open Bank Project is the one of the world’s largest open-source banking API initiatives with over 400 standardised APIs used by a community of over 11,000 developers. Some of the largest banking institutions in the world utilise the Open Bank Project for developing financial technology services and solutions.

Decentralised databases for data verification between banks and authorised third parties

Open Bank Project and API3 will enable banks to send data directly to blockchain networks through the use of API3’s Airnode first-party oracle. This provides third-party decentralised application developers with the opportunity to begin rapidly prototyping blockchain solutions powered by open banking data. Potential use cases for open banking data on blockchains are numerous, and include solutions like secure and decentralised databases for data verification between banks and authorised third parties, the bridging of open banking data to blockchain-native systems like DeFi and self-sovereign identities, and data marketplaces and data unions enabling banking customers to monetize their private financial data.

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