HUB Cyber Security Strikes $25M Revenue Deal for KYC Services
HUB Cyber Security Secures Major KYC Contract
HUB Cyber Security Ltd. (Nasdaq: HUBC) is making significant strides in the compliance technology sector. The company recently announced a landmark perpetual Know Your Customer (KYC) agreement. This partnership with Kyrrex, a renowned global crypto ecosystem and digital asset exchange, is set to considerably boost HUB’s annual recurring revenue.
Details of the Agreement
Under the terms of the agreement, HUB will implement its flagship Perpetual KYC (PKYC) solution. This innovative service will guarantee continuous monitoring and verification of customer identities, helping to ensure robust compliance with changing regulations. The agreement is projected to cover around 1.2 million to 1.5 million customer entities, generating an estimated $25 million in recurring revenue starting July 1, 2025.
Enhanced Compliance and Growth Strategies
HUB’s PKYC solution is designed to not only meet current compliance standards but also to provide insights that anticipate future regulatory requirements. This includes features like automated risk scoring and intelligence that keeps clients ahead of developments in regulatory frameworks, such as the European Union’s Markets in Crypto-Assets (MiCA), Financial Crimes Enforcement Network (FinCEN), and Financial Action Task Force (FATF) regulations.
The Role of Regulatory Readiness Sprints
To further support the impending merger between Kyrrex and its partner merchant vendor, HUB will conduct Regulatory Readiness Sprints. These sprints are essential for ensuring that all parties involved are well-prepared during the pre-close due diligence phase. Additionally, the planned rollout of a Unified KYC Secured Fabric aims to capture cost synergies right from day one.
The Impact on HUB’s Business Model
With this agreement, HUB reinforces its reputation as a vital partner for organizations navigating the complex landscape of compliance and growth. CEO Noah Hershcoviz emphasized that the resources provided through HUB’s AI-native technology will position the newly merged entity for success in a competitive market.
Financial Growth and Sustainability
The addition of this high-margin revenue stream aligns with HUB's long-term objectives for growth and profitability. It exemplifies HUB’s ability to transform regulatory requirements into opportunities for strategic advantage, enabling them not just to comply, but to thrive.
Kyrrex and its Role in the Cryptocurrency Ecosystem
Kyrrex, the partner in this significant agreement, operates a fully regulated crypto-fiat ecosystem, offering a comprehensive platform for finance, payments, and trading operations. As it works towards achieving full compliance with MiCA and acquiring additional licenses, Kyrrex aims to provide seamless services that integrate banking with access to wider financial markets.
Collaboration with the Crypto Merchant
This collaboration with the established crypto merchant vendor further expands HUB’s reach. The vendor is recognized for operating one of the longest-standing crypto payment gateways, facilitating transactions for merchants in over 190 countries, thereby increasing HUB’s visibility in the ever-expanding crypto market.
HUB Cyber Security's Mission and Vision
Founded by veterans of elite Israeli Defense Forces intelligence units in 2017, HUB has quickly established itself as a leader in cybersecurity and compliance technology. Its cutting-edge Secured Data Fabric platform is designed to protect sensitive information and ensure regulatory compliance for various sectors, including financial institutions and government entities. HUB's innovative solutions not only enhance security but also streamline operations, providing peace of mind in an increasingly digital world.
Innovative Technology for Future Needs
HUB is committed to continuous innovation. Its advanced encrypted computing solutions are designed to prevent intrusions and safeguard sensitive data from potential threats. With operations in over 30 countries, HUB's reach and capabilities continue to grow, making it an essential player in the global cybersecurity landscape.
Frequently Asked Questions
What is the main objective of HUB's KYC agreement?
The primary aim is to provide perpetual KYC services that ensure compliance with various regulations and support the merger between Kyrrex and a crypto merchant vendor.
How much annual recurring revenue is HUB expected to generate?
HUB anticipates generating approximately $25 million in recurring annual revenue through this agreement, which affects up to 1.5 million customer entities.
What unique features does HUB's PKYC solution include?
HUB’s PKYC solution includes continuous automated monitoring, risk scoring, regulatory intelligence, and fabric-based integration services.
Who are the key partners involved in this agreement?
The key partners are HUB Cyber Security, Kyrrex, and a prominent crypto merchant vendor working together to enhance KYC compliance in the crypto industry.
How does HUB Cyber Security differentiate itself in the market?
HUB distinguishes itself through its AI-driven technology that allows real-time regulatory adaptability and client insights, which is pivotal for companies navigating the compliance landscape.
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