Lightspark partners with Proof to develop digital ID and sanctions credentials for regulated payments.
Proof, the trusted platform for securing the digital economy, announced digital credential solutions that enable digital asset wallets, service providers, and users to prove their identity and KYC characteristics in a privacy-protecting, repeatable, and secure way. The solution offers a modern approach to on-chain activities, streamlining user experiences and enhancing compliance for regulated service providers and their customers.
“There is incredible innovation and potential in blockchain technology to transform finance, and digital credentials are a necessary component for these networks to support mainstream payments and other financial services,” said Proof CEO and Founder Pat Kinsel. “Financial institutions won’t fully embrace blockchain-based services until they can verify parties in a transaction and meet the same compliance standards they follow for traditional transactions. Proof’s identity platform bridges that gap and enables mainstream consumers and financial institutions to embrace digital assets confidently.”
Digital Credentials for Digital Asset Services
Proof is launching the industry’s first entity-level certification solution for US sanctions screening. This credential enables instant verification by banks, payment service providers, centralized cryptocurrency exchanges, hosted wallet services, and other financial institutions to verify the US sanctions status of counterparties and customers, allowing them to better integrate into the traditional banking and payments economy. Proof acts as a centralized certification authority, issuing cryptographically secure credentials that enable market participants to efficiently perform required diligence checks and compliance reviews as mandated by their regulatory obligations.
Lightspark Leverages Proof
Lightspark, the fastest global open payment network built on Bitcoin, is one of the first companies to join Proof’s network, advancing its compliance capabilities and utilizing Proof’s Certify product to verify and secure transactions.
“Lightspark is building the future of global payments on Bitcoin — the world’s most open and secure money network,” said David Marcus, co-founder and CEO of Lightspark. “To bring Bitcoin into the regulated payments era, we need modern identity and trust layers. Proof’s digital credentials make it possible for senders and receivers to verify each other in real time — unlocking fast, compliant, and trusted payments on Bitcoin at scale.”
A Convenient Consumer Identity Network
Proof has already secured over $500 billion in traditional financial transactions across banking, real estate, and insurance. Leveraging the insights from this unique dataset, Proof can verify consumer identities for transactions with Proof’s Certify, a reusable digital identity product. Consumers can verify their identities once and then safely send or receive crypto knowing that they are transacting with the right person. By applying the same cryptographic verification principles that secure banking, real estate, retirement, and insurance transactions to digital assets, Proof is creating the trust infrastructure necessary for mainstream crypto adoption.
Comprehensive Travel Rule Compliance Solution
This consumer trust approach also streamlines regulatory compliance. Certify provides a seamless approach to sharing identity information, performing sanctions screening, and meeting regulatory obligations at the customer level. The platform integrates with existing financial reporting requirements known as Travel Rule mandates, enabling providers to efficiently perform KYC checks and securely share necessary information across payment rails. This capability bridges the gap between digital asset providers and traditional banks, enabling seamless integration while meeting all compliance expectations and accelerating stablecoin adoption.
Catch more CIO Insights: The CIO as AI Ethics Architect: Building Trust In The Algorithmic Enterprise
[To share your insights with us, please write to psen@itechseries.com ]
