Problem: The Compliance Paradox

In the rapidly evolving landscape of Real World Assets (RWA) and institutional DeFi, the industry faces a critical bottleneck: the friction between regulatory compliance and user privacy.

The "KYC Fatigue"

For users, the current onboarding experience is broken. Every new platform requires a repetitive, intrusive Know Your Customer (KYC) process. Users are forced to upload their government IDs, scan their faces, and share sensitive personal information with dozens of disparate entities. This redundancy creates "KYC Fatigue," leading to high drop-off rates and a poor user experience.

The Data Honeypot Risk

For platforms, storing this data is a liability, not an asset. Small to medium-sized RWA protocols often lack the enterprise-grade security infrastructure required to protect sensitive user data. By collecting passports and addresses, these platforms become "honey pots" for hackers. A single breach can expose thousands of users to identity theft, while exposing the protocol to severe legal and reputational damage.

The Privacy Gap

Fundamentally, there is a mismatch between the ethos of Web3—which prioritizes self-sovereignty and anonymity—and the requirements of regulated finance. Current solutions force a binary choice: complete transparency (doxing) or complete anonymity (illegality). There has been no middle ground that satisfies regulators without compromising user privacy.