'Know Your Issuer': This Tech Combats Counterfeit Coins, Starting With USDC and PYUSD
Bluprynt completed a pilot project to combat counterfeit cryptocurrencies by integrating a "Know Your Issuer" (KYI) framework into stablecoins from Circle and PayPal. The initiative aims to address estimated annual losses of $1.6 billion due to fake tokens by linking issuers' credentials to assets on-chain. KYI verifies identities attached to digital assets, enhancing compliance with anti-money laundering regulations. The technology targets both retail investors and institutions, creating verifiable digital identities at issuance. The pilot coincides with new U.S. regulatory guidance for banks on digital asset management. Bluprynt's framework is seen as a significant advancement for digital asset integrity, though it raises concerns about potential centralization in decentralized finance (DeFi). The integration with the Solana Attestation Service allows for on-chain token verification.
