Binance unveils soulbound tokens to offer decentralized KYC of wallets

The world’s largest crypto exchange, Binance has announced it will launch the first-ever soulbound tokens, the Binance Account Bound (BAB) token on the BNB Smart chain, which will certify verified user status in the decentralized society. 

Unlike traditional crypto assets such as Bitcoin and Ethereum, the BAB tokens are created as non-transferable and non-financialized tokens. They are exclusively for online identification purposes and exist under the Soulbound Tokens (SBT).

The BAB will be launched as a pilot project and will be exclusively accessible via the Binance mobile app to enable Binance users who passed the KYC to mint their BAB tokens on their Binance wallets. 

Holding a BAB token serves as proof that a wallet owner has passed the Binace KYC check and will be displayed on wallets. The token will also serve as a Binance identity and can be utilized by third-party protocols to verify BAB tokens for multiple purposes, including avoiding bots, NFT airdrops and more. 

Binance predicts the use case of BAB will expand as the Web3 ecosystem evolves. ‘As we begin to explore how credentials will function in Web3, whether it be in the form of a verifiable skillset or an earned title, further use cases for the BAB token will arise. This sense of accountability paves the way for a more efficient decentralized community and space,’ said Binance.

SBT was first introduced by Ethereum co-founder Vitalik Buterin along with E. Glen Weyl and Puja Ohlhaver. The use cases for SBT range from verifying academic credentials, Web3 credit scores and more.

Photo: Binance