Emerging "regtech" Identitii Limited can now be added to the growing band of ASX listed Australian start-ups, now that 25 per cent of the company has been floated. Identitii has been primarily sold on its potential to create a way for banks and corporates to securely overlay transaction level detail on payments messages, using existing payments infrastructure.The company website explains: "Built on a private blockchain, Identitii can provide a singular view of data over time, and solves the problems banks, corporates and their counterparties have in securely sharing detailed information relating to financial transactions, either within a bank, bank to bank, or bank to corporate customer."Yesterday's IPO, comprising almost 14.7 million ordinary shares, represented a quarter of the company entering public ownership. The float was been fully underwritten at A$0.75 per share, raising A$11 million. Of this, $9 million came from institutional investors and $2 million from the general public.In a sign that there were some stag profits to be made, the shares issued at $0.75, opened at $0.90, and spiked at $0.95 during the day before sinking to a more believable 84 cents at the close."Funds  raised  from  the  IPO  will  go  towards  further  development  and  commercialisation  of  Identitii's platform as  well  as  to  appointing  key  resources  in  business  development,  marketing,  account management  and  professional  services," the company said via an ASX announcement.  Four insto investment managers were cornerstone investors, taking up for $9 million of the IPO. KTM Capital and Canaccord Genuity acted as joint lead managers, with KTM Capital fully underwriting the $11 million raising.Ahead of the share float, Banking Day spoke to Nick Armstrong, chief executive officer of Identitii, about the company he co-founded in 2014. Armstrong said the firm could trace its success to the 2016 SWIFT Innotribe compliance challenge where it ran a pilot project with seven banks, including Macquarie Bank and Westpac, and from this success the startup attracted its first client: global trading bank, HSBC. The bank has been running test transactions via its India operations. HSBC is not, however, using the system for the financial compliance and blockchain-based purposes that Identitii was tested against at Innotribe. Armstrong said HSBC was more concerned with "improving the customer experience" - that is, ensuring payments went through faster, and reconciliation more accurate, with more documentation attached to the transactions to ensure the customers' trade-related payments were more effective - and all running on HSBC's existing banking system.This is one component of a proof of concept around the versatility of the messaging overlay claimed by that Identitii's proponents. "Whenever a payment is held up we know it costs on average US$50 each time for the bank to review it. Some of these will be trifling like checking the payee's name and others may be more complex and could take three days - with the consequent cost, particularly if it is a large transaction," he said.Anecdotally, one example cited by Armstrong was where one of the banks involved in its initial pilot project had admitted to