Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
"Verifiable Identity Embedded in Stablecoins Could End Counterfeit Crisis"

"Verifiable Identity Embedded in Stablecoins Could End Counterfeit Crisis"

ainvest2025/08/29 22:48
By:Coin World

- Bluprynt, Circle, and PayPal pilot KYI verification for USDC/PYUSD, embedding issuer credentials in stablecoins to combat counterfeit tokens. - The blockchain-based solution aligns with U.S. regulatory frameworks like the GENIUS Act, enhancing transparency for investors and institutions. - USDC ($70B) and PYUSD ($1.1B) face $1.6B annual losses from fraud; KYI creates direct links between tokens and verified business identities. - Experts praise the tech for bridging DeFi and compliance, with Paxos' Gianc

Bluprynt, a compliance and blockchain infrastructure solutions provider, has completed the first "Know Your Issuer" (KYI) verification of a global stablecoin with USDC , a move that marks a significant advancement in digital asset integrity. The pilot project, conducted in collaboration with Circle and PayPal (via its stablecoin PYUSD), aims to combat the proliferation of counterfeit tokens by embedding verifiable issuer credentials directly into each token at the point of issuance. This process ensures that investors, custodians, and financial institutions can instantly authenticate the provenance of stablecoins, enhancing transparency and trust in the digital asset space.

The initiative is part of a broader effort to align with emerging regulatory frameworks, including the U.S. Office of the Comptroller of the Currency’s (OCC) recent guidance on safeguarding digital assets. The pilot is also seen as a foundational step toward compliance with the GENIUS Act, the first federal U.S. law to set clear rules for dollar-backed stablecoins. By verifying the authenticity of USDC and PYUSD, the project supports the growing demand for regulatory clarity and operational security in the rapidly expanding stablecoin market.

Bluprynt’s KYI framework is built on blockchain-based cryptography, allowing for real-time verification of issuer identity and reducing reliance on traditional compliance systems. The technology integrates with infrastructure such as Solana Attestation Service (SAS), enabling token verification across on-chain tools like wallets and blockchain explorers. This approach not only streamlines verification processes but also offers a scalable solution for institutions and regulators seeking to mitigate risks associated with counterfeit tokens.

Circle’s USDC and PayPal’s PYUSD, issued by Paxos, are among the largest stablecoins by market capitalization, with USDC valued at over $70 billion and PYUSD at $1.1 billion as of recent data. The increasing adoption of stablecoins has coincided with a rise in fraudulent activity, with counterfeit tokens causing an estimated $1.6 billion in annual losses. Bluprynt’s solution aims to reduce these risks by establishing a direct link between token issuance and verified business identities, a critical step in securing trust in digital finance.

The pilot also supports broader industry efforts to integrate stablecoins into traditional financial systems. For example, Circle has partnered with Finastra to enable banks to use USDC for cross-border payments, leveraging Finastra’s Global PAYplus (GPP) network, which processes over $5 trillion in daily transactions. This integration offers a faster, more efficient alternative to traditional correspondent banking, while maintaining compliance with existing financial regulations.

Industry experts and regulators have praised the initiative for its potential to bridge the gap between decentralized finance (DeFi) and institutional compliance requirements. Christopher Giancarlo, a Paxos board member and former CFTC chair, described Bluprynt’s KYI framework as a “breakthrough for digital asset integrity.” The technology addresses a key challenge in the DeFi space—balancing permissionless innovation with regulatory compliance—by embedding verification directly into the blockchain, without altering market structure.

With counterfeit tokens and impersonation threats remaining a significant concern, as highlighted by blockchain security firm Chainalysis, the adoption of KYI could serve as a critical tool for both investors and regulators. As stablecoin usage grows and regulatory scrutiny intensifies, the ability to verify issuer authenticity in real time will become an essential feature for ensuring the stability and security of the global digital asset ecosystem.

Source:

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Ethereum's Institutional Takeoff: Why Wall Street Is Now Backing ETH's Next Leg Higher

- Ethereum's 2025 institutional adoption surge stems from technical upgrades (Fusaka/Dencun/Pectra) enabling 100k TPS at $0.08/tx, plus 3-14% staking yields outpacing traditional assets. - Institutional investors now control 9.2% of ETH supply via ETFs (77% August inflows) and corporate treasuries, with $17.6B staked across 19 firms. - Regulatory clarity (CLARITY/GENIUS Acts) and $20-30B daily stablecoin settlements solidify Ethereum as Wall Street's "productivity engine" and DeFi backbone. - Analysts proj

ainvest2025/08/30 04:30
Ethereum's Institutional Takeoff: Why Wall Street Is Now Backing ETH's Next Leg Higher

Bitcoin’s Mayer Multiple Z-Score: A Strategic Buy Signal Amid a Maturing Market

- Bitcoin’s Mayer Multiple Z-Score of -0.3 in August 2025 signals undervaluation relative to its 200-day moving average ($100,465.20) at $113,508.55. - The metric (1.13) reflects a mature market with reduced volatility compared to 2017/2021 cycles, indicating stable institutional adoption. - A negative Z-Score highlights a statistical edge for long-term investors, aligning with historical mean-reversion patterns in bull cycles. - Reduced speculative trading and increased derivatives liquidity strengthen th

ainvest2025/08/30 04:30
Bitcoin’s Mayer Multiple Z-Score: A Strategic Buy Signal Amid a Maturing Market

Solana News Today: Solana’s Validators Race to Approve Near-Instant Finality Revolution

- Solana validators are voting on the Alpenglow upgrade, a historic consensus overhaul aiming to reduce block finality from 12.8 seconds to 150 milliseconds via off-chain validation. - The upgrade introduces a "20+20" resilience model and removes fixed voting costs, promoting decentralization by eliminating stake-based penalties for validators. - If approved, Alpenglow could enhance Solana's competitiveness in high-performance sectors like DeFi and gaming while aligning with industry trends toward faster,

ainvest2025/08/30 04:18
Solana News Today: Solana’s Validators Race to Approve Near-Instant Finality Revolution

China’s CNPC Explores Stablecoin Use in Oil Trade: A Strategic Shift in Yuan Globalization

- CNPC explores stablecoins for oil trade, challenging dollar dominance and advancing yuan globalization. - Hong Kong's stablecoin regulations support CNPC's strategy, bridging China's capital controls with global markets. - Conflux 3.0 blockchain enables high-volume settlements, with market projections reaching $2 trillion by 2028. - Regulatory risks persist, with former PBOC Governor Zhou Xiaochuan warning of currency over-issuance and speculative misuse. - CIPS integration with stablecoins aims to creat

ainvest2025/08/30 04:15
China’s CNPC Explores Stablecoin Use in Oil Trade: A Strategic Shift in Yuan Globalization