CCPEDIAby Unity Nodes
CIP Browser/CIP-0043GitHub ↗

CIP-0043: Add TRM as a SV

FinalGovernanceby Eric SaranieckiCreated 06-02-2025Approved 24-02-2025
TL;DR

This CIP proposes adding TRM Labs as a Weight 2.5 SV to provide on-chain AML monitoring for Canton Coin and USDC transactions, and to engage in regulatory education about Canton's privacy capabilities. TRM Labs commits to integrating CC and USDC with their AML product within six months, and to active regulatory engagement and joining the Global Synchronizer Foundation within 60 days, with penalties for missed milestones. This aims to enhance institutional adoption of Canton Coin by de-risking transactions and addressing regulatory concerns regarding privacy.

CIP-0043

Abstract

  • Add TRM as a Weight 2.5 SV for providing three services to the Network.
    • Integrating Cantoin Coin with their on-chain AML product.
    • Integrating USDC with their on-chain AML product.
    • Active regulatory engagement and education about Canton and its privacy capabilities.
  • TRM Labs commits to provide on-chain AML monitoring of Canton Coin transactions and USDC by no later than 6 months after the approval of this CIP.
  • TRM Labs commits to join as a General Member of the Global Synchronizer Foundation.

This CIP is licensed under CC0-1.0: Creative Commons CC0 1.0 Universal.

Motivation

  • On-chain AML monitoring is critical for supporting parties in the Canton Network that wish to send/receive Canton Coin as a regular part of their business.
    • On-chain AML monitoring helps senders de-risk outbound transactions by having a better understanding about the legitimacy of the destination address.
    • Inbound Canton Coin transfers come with information regarding the safety of the incoming Coins from an AML perspective.
  • Absent this capability, institutional participants will be limited and hesitant to use Canton Coin as part of their ordinary business activities.
  • TRM Labs is one of the requested AML providers by Circle.
  • ‘Privacy’ is a dirty word with the conflation of ‘privacy’ with ‘anonymity’ and, in particular, tends to be automatically rejected by regulators. Having a trusted partner engage the regulators about the differentiation of Canton wrt privacy could go a long way.

In the event that TRM fails to achieve any of the following milestones within the prescribed timeframe, their weight will be reduced by the indicated amount:

Additional Clauses

  • CC integrated with their on-chain AML product within 6 months. If they fail to do so, their SV weight will be reduced by 1.0.
  • USDC integrated with their on-chain AML product within 6 months. If they fail to do so, their SV weight will be reduced by 1.0.
  • Active regulatory and educational engagement within 60 days. If they fail to do so, their SV weight will be reduced by 0.25.
  • Join as a general member of the GSF within 60 days. If they fail to do so, their SV weight will be reduced by 0.25.

About TRM Labs

  • TRM is on a mission to build a safer financial system for billions of people. We deliver a blockchain intelligence data platform to financial institutions, crypto companies, and governments to fight cryptocurrency fraud and financial crime. We consider our business — and our profit — as a way to move towards our mission sustainably and at scale.

Changelog

  • 2025-02-13: Initial draft of the proposal.
  • 2025-02-24 Approval announced via mailing list thread