The financing arm of General Motors, General Motors Financial, announced on Monday that it will be teaming up with Spring Labs, a blockchain startup to search for a solution to identity verification.

Spring Labs, which boasts the likes of former Trump economic advisor Gary Cohn on their board of advisors, stated that GM is exploring an acquisition of a stake as well as other use cases.

Notably, a GM Financial spokesperson declined to comment on the possibility of the of GM or the subsidiary becoming a shareholder of Spring Labs.

CEO & Co-founder Adam Jiwan stated:

“We are actively exploring the development of auto finance and GM specific use cases, in addition to the identity verification products being developed.”

Jiwan went on to add the blockchain platform which Spring Labs is currently developing will have a private beta available for all partners in the third quarter of this year. The live network is scheduled to launch early next year.

Mike Kanarios, chief strategy officer at GM financial in a press statement said:

“Today’s announcement underscores our commitment and investment to advance these efforts, and we are pleased to collaborate with Spring Labs as a member of the SFIP program.”

Dubbed the Spring Founding Industry Partners (“SFIP”), the Program’s goal is to create a regulatory-compliant solution for ID verification as well as identity fraud prevention. In addition to this, Spring Labs also announced that they have signed up a number of fintech companies to join the program and these include SoFi, OnDeck Capital, Avant, GreenSky, Funding Circle, just to name a few.

“Ultimately, this network is designed to transform how information and data are shared globally,” as per the GM press release.

Spring Labs was founded back in 2017 by both the board and team at Avant, a lending platform. The company is currently working on their blockchain-based network which could allow banks, lenders as well as data providers to exchange data without the risky affair of sharing underlying source data with a core focus on identity information.

Back in March 2018, Spring Labs acquired an astonishing $14.5 million in seed funding which was facilitated by August Capital.

As each day passes the many uses of blockchain tech become apparent to various companies such as the likes of GM. What are your thoughts on the use of blockchain technology to combat fraud? Let us know your thoughts by leaving a comment below.

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