This article investigates the substantial burden that the existing Know-Your-Customer (KYC) process places on financial institutions (FIs) and their consumers. Repeated verification among organizations causes delays, expensive expenses, and inefficiencies. The potential to transform KYC through Distributed Ledger Technology (DLT) and Decentralized Finance (DeFi) is examined in this essay. Every user can have a single, verified KYC record produced by utilizing the transparent and safe characteristics of DLT. It conforms to a record that can be safely shared with approved financial institutions, removing the need for duplicate verification and expediting the onboarding process. Self-sovereign identification is one of the DeFi concepts that might give users more control over their data, thus improving security and privacy.