API3, a provider of decentralized and measurably secure data feeds that power Web 3.0 apps without the intervention of external intermediaries, today announced that it has entered into a 10-year development partnership with Open Bank Project to direct more than 400 banking and open banking APIs interconnect to block blockchains via API3’s Airnode, all housed under open source code.
Open banking is a practice where banks provide authorized third-party providers with access to banking information through the use of Application Programming Interfaces (APIs). Perhaps the most well-known open banking initiative is the revised Payment Services Directive (PSD2) – an EU regulation adopted in 2015 that requires banks to create mechanisms that allow third-party providers to operate safely, reliably and quickly with the bank and data on behalf of and with the consent of their customers.
As governments around the world have begun to adopt open banking regulations, an industry-standard framework has emerged for providing third-party access to banking information. Open Bank Project is at the forefront of this field by continuously working with government regulators and banks to help codify open banking standards, and by developing open banking APIs for many of the world’s largest financial institutions. Open Bank Project is one of the world’s largest open-source banking API initiatives with over 400 standardized APIs used by a community of over 11,000 developers.
Some of the largest banking institutions in the world use the Open Bank Project to develop financial technology services and solutions.
Open Bank Project + API3
Through their development partnership, Open Bank Project and API3 will enable banks to send data directly to blockchain networks through API3’s Airnode first-party oracle. This allows decentralized third-party application developers to quickly start prototyping blockchain solutions based on open banking data.
Potential use cases for open bank data on blockchains are many, and include solutions such as secure and decentralized databases for data verification between banks and authorized third parties, bridging open bank data to blockchain native systems such as DeFi and self-sovereign identities, and data markets and data unions that enable bank customers to monetize their private financial data.
“We are absolutely delighted to be working with API3 to enable open banking on the blockchain. Hopefully this will serve as a framework for financial regulators to explore and create new standards and lay the foundation for the blockchain economy to come together with bank-based digital offerings. “
– Simon Redfern, CEO, Open Bank Project
To celebrate this partnership and to provide adoption guidance for blockchain banking, the Open Bank Project and API3 will jointly organize a series of technical sprints, inviting the entire blockchain community, financial institutions and government regulators to participate and discuss, and discover what a new financial reality could look like in general. Details will be announced shortly.
“API3 is incredibly excited to see the blockchain industry begin to merge with open banking, and we can’t wait to see the innovative solutions that will grow from this. As traditional finance and cryptocurrency converge, we hope this renewed connectivity between the two will lay a foundation for the future of a digital banking experience including blockchain-enabled systems such as DeFi. “
– Heikki Vänttinen, co-founder of API3