Liquid Noble is a fintech platform specializing in tokenized precious metals or redeemable digital tokens representing gold, silver, and platinum operating in the Real-World Assets (RWAs) industry. Seeing a great shift in the traditional economic market, Liquid Noble saw an opportunity to use blockchain and revolutionize the precious metal market. Currently, investors on Liquid Noble can seamlessly access and trade real-world assets with the security and efficiency of blockchain technology. In other words, users can invest in gold, store it, and use it for everyday transactions. Over the past year, the platform has grown rapidly, driven by events like the launch of new gold-backed tokens, further accelerating Liquid Noble’s expansion.
However, beyond tokenization, Liquid Noble has also built an innovative B2B infrastructure that allows third-party businesses, such as exchanges or payment platforms, to integrate its tokenized assets into their ecosystems. Given the nature of the precious metal industry and stringent regulatory requirements, the fintech platform needed to partner with an experienced fraud prevention service provider that specializes in both identity verification and Anti-Money Laundering (AML) screening solutions that are fully automated, accurate and efficient.
To meet its audience’s needs and industry-specific requirements, including different verification requirements based on regional and sector-specific requirements for both tokenized transactions and traditional financial operations, Liquid Noble required centralized KYC/AML software. This solution needed to be feature-rich and seamlessly integrate with all aspects of the platform’s already existing AML/CTF program.
The Challenges
Over the years, Liquid Noble has created a transparent and reliable system that makes gold investment more accessible to a wider audience. The platform’s system is designed to be FATF and AUSTRAC-compliant, ensuring adherence to stringent AML/CTF regulations. However, with these sorts of requirements and the level of accessibility, there’s a greater responsibility when it comes to ensuring compliant transactions that secure its high-quality tokenized assets.
Analyzing hundreds of IDs from various countries manually would require extensive expertise and resources in-house, which wasn’t the best option in terms of accuracy and scalability. “We needed identity verification tools that would enable a fast registration process without sacrificing security or requiring extensive internal development,” commented Dan Dragon, the CEO of Liquid Noble.
Liquid Noble wanted to take its innovative financial products to the next level, starting from the very first step, which is identity verification at the account opening stage. For this reason, a manual Know Your Customer (KYC) process wasn’t a viable option, as it would fail the platform’s standards, slowing down various internal compliance procedures.
Liquid Noble allows customers to link their payment details to their gold holdings, enabling international transactions. To safeguard their data and finances from breaches or account takeovers, the platform required a secure, global ID verification solution tailored to its international customer base.
“Our customers can use assets on their Liquid Noble account to make purchases anywhere in the world, just as they would with any other currency,” said Dan Dragon. “So we needed a KYC solution with an extensive geographical coverage that supports multiple languages and has built-in biometric verification, not just standard document checks.”
Criteria For a New Provider
Liquid Noble aimed to integrate a new KYC/AML compliance solution that:
✔️ Supported its extensive geographical coverage.
✔️ Focused on both fraud prevention and end-user experience.
✔️ Offered both user identity verification and AML tools under a single dashboard.
The fintech company understood that in a highly regulated industry where the chances of fraud are higher than usual due to factors like high-value transactions, identity verification is needed to serve not just as a compliance requirement but also as a first-line defense against fraud.
Liquid Noble’s team wanted to score two goals with the same provider: “Our goal was to work closely with a serious RegTech service provider that offered both AI-powered user identity verification and AML services, such as fully automated sanctions checks and adverse media screening,” explained Dan Dragon, the CEO of Liquid Noble.
This was vital for Liquid Noble to handle both verification and suspicious user investigation more efficiently, for example, in cases where known blocklisted users attempted to register on their platform again, and at the same time, instead of manually assessing various risk signals, let the software provide detected red flags to them.
The Solution
Whether facing economic crises, political instability, or inflation surges, investors turn to gold as a tangible store of value. So, proven reliability as a business and a service provider was a key factor for Liquid Noble, as its team strived to uphold this standard in all aspects of their business. This included its choice for a RegTech service provider, which needed to offer best-in-class fraud prevention abilities, catering to its industry, which requires conducting proper identity verification checks when establishing a new business relationship, whether it’s an individual or a business entity.
For this reason, Liquid Noble implemented iDenfy’s automated identity verification software and AML screening solution, along with other key functionalities:
- ID document checks + selfie verification. iDenfy’s software automatically extracts and verifies information from 3000+ ID document types across 200 countries. Then, biometric and facial recognition algorithms ensure that the person’s facial features are real during the selfie check and match their ID document’s portrait.
- PEPs + sanctions + watchlist checks. iDenfy’s solution automatically scans various AML sources, helping identify PEPs and sanctioned individuals or find matches in global criminal watchlists. This includes the Australian Sanctions List, UN Sanctions List, OFAC Sanctions List, EU Sanctions List, UK Sanctions List, and other AML databases.
- Adverse media screening. iDenfy’s service filters out negative news based on preferred keywords in seconds, reducing false positives by recognizing typos in names. The data is collected from 195 countries in 12+ languages and integrated with Google, Bing, and Yahoo for broader, accurate news coverage.
By screening AML databases and checking adverse media for enhanced due diligence (EDD), Liquid Noble wanted to block fraudulent access and prevent bad actors from infiltrating existing accounts and accessing sensitive data on the platform. Consequently, KYC verification and AML screening solutions from iDenfy were used to automate the whole compliance framework for Liquid Noble and enhance its fraud prevention capabilities.
Why iDenfy?
Liquid Noble selected iDenfy’s solutions based on key factors, including:
✔️ Improved KYC and AML automation capabilities for an automated compliance workflow reducing manual operations.
✔️ AML screening results provided in seconds, seamlessly combining with other workflows such as individual KYC checks.
✔️ Fully-compliant, customizable fraud prevention solutions that ensure local and global compliance in line with auditing policies in different countries and regions.
The platform’s customers can buy gold in small quantities without storage fees. With that in mind, Liquid Noble didn’t want to overburden the user with complex, multi-step registration forms or ID verification flows. The fintech platform wanted to make gold investment as easily accessible as possible — without sacrificing security.
“Automation was inevitable. With iDenfy, we wanted to reduce operational strain by leveraging automated verification instead of relying on manual reviews at scale. Building our own KYC system, let alone AML screening, would not have been the best cost-effective solution,” said Dan Dragon, the CEO of Liquid Noble.
The Results
Liquid Noble used iDenfy’s software as a way to ensure compliance with KYC and AML regulations and, at the same time, boost transparency and accountability in its blend of services that comprehend precious metals, traditional finance, and the digital asset industry. With plans to scale and help investors secure financial stability using gold and unique tokens, Liquid Noble wanted to stay in this lane and amplify the confidence that its users have.
By integrating iDenfy’s ID verification, AML screening, and adverse media screening solutions, the fintech platform improved several areas of its compliance program:
🟢 Automated AML Screening
As part of its customer due diligence measures designed to identify and mitigate financial crime risks, Liquid Noble used iDenfy’s software to automatically detect and verify PEPs and sanctioned individuals who couldn’t be onboarded or required extra due diligence checks. With iDenfy’s AML software, the company enhanced its PEP and sanctions screening, watchlist checks, and adverse media monitoring while automatically cross-referencing individuals against these high-risk databases. The integration helped switch to a user-friendly dashboard holding all customer KYC and AML data in a single view, simplifying screening and cross-referencing processes.
Using automation from iDenfy was especially important, as changes in the geopolitical environment push new sanctions and shifts in regulatory rules, which require heavy and high-quality data collection. However, with a single solution, all databases and adverse media coverage are integrated and can be accessed in one place, showcasing risk signals and potential concerns for Liquid Noble’s compliance team in real-time.
➡️ This allowed Liquid Noble to cut data processing time in half compared to previous manual estimate calculations.
🟢 Improved KYC Onboarding
iDenfy’s end-to-end ID verification solution helped Liquid Noble improve its conversion rate and onboard genuine users in under 60 seconds on average, using the flow of uploading an ID document that follows a quick selfie verification process. With the option to customize the KYC process for different user segments and jurisdictional requirements, Liquid Noble was able to:
- Create a fully streamlined KYC process where the user can create the account and start investing on the Liquid Noble platform without filling out lengthy questionnaires manually.
- Run other AML screening and risk assessment processes in the background without affecting the end user while enabling the compliance team access to a complete audit trail to ensure easy traceability to a particular verification case if needed.
Having an automated ID verification process for user onboarding resulted in a positive impact for Liquid Noble’s compliance team, who now doesn’t require hours of manual work for recognizing different ID document types and comparing data if it matches with other sources, as the software does this for them automatically.
➡️ This helped Liquid Noble build a more efficient KYC workflow, creating a seamless account opening process, with 86% of user verifications completely automated, not requiring manual interventions.
“While our initial registration volume was not high, integrating iDenfy ensured we had a scalable, future-proof solution that will support our growth without adding unnecessary complexity.”
Dan Dragon, the CEO of Liquid Noble
About Liquid Noble
- Liquid Noble is a fintech company that provides a reliable platform for investing in tokenized precious metals and offers other businesses a B2B infrastructure to integrate tokenized assets.
- It specializes in fully backed, redeemable digital tokens representing gold, silver, and platinum, enabling investors to access and trade real-world assets with the efficiency of blockchain technology.
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