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Circle launches institutional digital identity system

Monday 3 October 2022 13:37 CET | News

Circle, the USD stablecoin USDC issuer, has announced the launch of an institutional digital identity system based on Verite, an open-source framework for decentralized identity credentials.

 

Institutions with Circle accounts and MetaMask institutional wallets can apply for KYB (Know Your Business) credentials, allowing web and mobile applications and smart contracts to verify user permissions (including usage rights, time, location, and others) for licensing on-chain activity.

Circle said eligible businesses will have direct control over how, when, and where their identity attributes are shared, and will not send or store any personally identifiable data on-chain. Circle has partnered with TrueFi to support Verite KYB credentials to access TrueFi’s permission lending platform, which allows institutions to transact with authenticated counterparties they can trust.

Verite is an open framework for proving identity claims in Web3 without exposing sensitive personal information. Web apps, mobile apps and smart contracts get the benefit of identity-verified participants from the simple check of a Verite credential.

Circle, the USD stablecoin USDC issuer, has announced the launch of an institutional digital identity system based on Verite, an open-source framework for decentralized identity credentials.

 

More on Verite

Centre, Circle, and Block will collaborate on Verite to promote broader adoption of crypto finance and crypto payments. Early feedback on Verite, and commitments to collaborate on shared decentralized identity standards going forward, includes ecosystem players Algorand, Coinbase, Compound Labs, ConsenSys, Espresso Systems, FTX, Hedera Hashgraph, Ledger, MetaMask Institutional, Phantom Technologies, Solana Foundation, Spruce, Stellar Development Foundation, and TrueFi.

The Centre Consortium developed Verite in collaboration with Circle. Circle intends to build on Verite to become an issuer and verifier of KYB credentials, which will allow institutions to participate in Web3 with counterparties they can trust.

Verite credentials are akin to ‘cryptographic badges’, which cannot be traded or exchanged on a secondary market. Verite credentials are only stored locally on a user’s wallet, and they cannot be transferred to another wallet.

Decentralized identifiers (DIDs) are one of the standards for decentralized identity incorporated in Verite’s protocols. Verite also incorporates standards such as the verifiable credentials data model, presentation exchange, and credential manifest.

Circle’s Euro Coin

The USDC stablecoin issuer launched a fiat-backed digital asset called Euro Coin (EUROC) in June of 2022. The new Euro Coin was initially launched on the Ethereum blockchain as an ERC-20 token on 30 June 2022, with more supported networks to follow later in the year. Euro Coin is fully-backed by euro-denominated reserves held in the custody of financial institutions within the US regulatory perimeter. The coin is being issued under a regulated framework for money transmission, under the same statutes that regulate USDC, with full reserves in EUR.


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Keywords: KYC, KYB, digital identity, digital signature, blockchain, DeFi
Categories: Fraud & Financial Crime
Companies: Circle
Countries: World
This article is part of category

Fraud & Financial Crime

Circle

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