Identity providers

All around the world, securities regulations mandate the identification of security owners to enforce compliance rules and guarantee asset ownership. This principle extends to tokenized securities on the blockchain, where proper user identification is crucial for enforcing securities regulations. To achieve this, the ERC-3643 token protocol leverages decentralized identity solutions, named "onchainid" in the code of the protocol, which is an open-source suite of smart contracts designed to reference and identify users and entities on the blockchain using verifiable credentials. It is a direct implementation of the W3C DID recommendations.

While the ERC-3643 protocol supports anonymous verifiable credentials, the need for KYC (Know Your Customer) agents ("claim issuers") remains essential. Tokeny, as a software provider, does not act as a KYC agent. Instead, token issuers have the flexibility to select any identity provider they prefer and appoint them as KYC agents. Tokeny facilitates the onboarding process by offering various solutions such as an onboarding tool in the Investor App, or an identities management API, but these tools are not exclusive or mandatory. Issuers and asset servicers can utilize their own onboarding tools and KYC identification processes to qualify investors.

At the conclusion of the KYC process, a smart contract representing the user is deployed on the blockchain, and the proof of verification is added as verifiable credentials within this smart contract. This approach ensures that user identification and compliance are maintained in a decentralized and secure manner. Identification proofs and token qualification status are onchain.

Today, several KYC solutions and providers are already used by Tokeny's customers, demonstrating its effectiveness and adaptability in integrating with existing KYC processes and regulations.

Examples of Onboarding solutions and investor portals:

Examples of KYC solutions: