Digital Platformer and Partisia are entering into a partnership to develop fintech applications focused on financial security and privacy protection. This collaboration centers around Partisias’s platform and includes efforts to develop stablecoins and combat financial fraud.
Digital Platformer, a pioneer in decentralized solutions for the financial sector in Japan, and Partisia, an innovative tech company and a global leader within Multiparty Computation and advanced cryptography are joining forces. This partnership will leverage Partisia’s technology and Digital Plartformer’s expertise to create innovative solutions that ensure transaction data confidentiality while enabling financial fraud detection. This approach balances privacy and transparency, ensuring compliance with data protection and antitrust regulations.
Japan is actively embracing blockchain technologies, aiming to create decentralized solutions for verifiable identity across industries and sectors as well as stablecoins as a more secure and agile e-cash solution.
At the same time privacy is at the core of the Japanese data protection regulation dubbed APPI and similar to the GDPR regulation in the EU.
This type of regulation - which is also the primary difficulty - is in direct conflict with the transparency that is at the core of blockchain technologies.
It is the regulatory landscape with GDPR and the accountability that comes with the latest AI and Data act in the EU and the compatibility of Partisia Platform, that makes the product market fit ideal for the Japanese market. The collaboration with Digital Platformer utilizes this to its fullest extent.
Detecting fraud by combining privacy and transparency:
The biggest endeavor in the collaboration is the work on the type of financial fraud detection that tackles traditional bank transactions. Financial fraud is an increasing problem that globally costs trillions for dollars and fuels organized crime from drug dealing to human trafficking. The fraudsters become more and more advanced and money moves around in patterns that become harder and harder to distinguish from normal behavior.
Fortunately, most financial fraud passes through banks and other financial institutions, which leave digital traces originating from single transactions between a sender and a receiver. Most fraud detection today is conducted within a single bank with too little information to recognize fraud. Information has to be shared across not just the sender and the receiver but the large number of banks involved in the chain of transactions used to disguise fraud.
The combination of privacy and transparency that comes with the Partisia Platform allows for transaction data to stay confidential while using the very same data to detect financial fraud, by connecting the dots between different banks, in a way that has not yet been possible.
By merging the expertise from both Digital Platformer and Partisia we’re developing a powerful and innovative tool that provides comprehensive insights into the various activities occurring in different banks. This includes analyzing behavioral patterns, transactions, account numbers and much more. In other words we’re providing the ability to not only detect fraud in real-time but we’re also predicting future fraudulent activities.
The privacy tools ensure compliance with both data and antitrust regulation and transparency ensures accountability around the use of confidential computation. In combination these two sets of tools provide the foundation for a number of new novel ways to combat financial fraud.
