CIP-0043: Add TRM as a SV

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.

Copyright

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