Proof Launches Digital Credential Solution to Modernize Compliance in the Digital Asset Ecosystem
Proof, a leading platform dedicated to securing the digital economy, has announced the launch of its new digital credential solution — a transformative innovation aimed at bringing modern, privacy-preserving identity verification to digital asset wallets, service providers, and users. This solution empowers participants in the blockchain and digital finance ecosystem to prove identity and key compliance characteristics, such as Know Your Customer (KYC) and sanctions status, in a secure, repeatable, and privacy-conscious manner.
As the blockchain industry continues to evolve, the pace of asset transfers and financial innovation has outstripped the speed and efficiency of traditional compliance processes. While digital transactions happen in real-time, regulatory obligations — especially those related to identity verification — often remain slow, disjointed, and manual. Proof aims to close that gap, offering a fast, trustworthy digital identity infrastructure that aligns compliance requirements with the speed of on-chain activity.
Enabling Real-Time Compliance with Trusted Digital Credentials
Proof introduces what it calls the first trusted digital credential for instant ID and attribute verification, including sanctions screening, that operates seamlessly on-chain. These credentials enable users to engage in regulated blockchain-based activities — such as sending payments or accessing financial services — while allowing service providers to meet their compliance mandates.
By issuing cryptographically secure digital credentials, Proof ensures that participants in digital asset transactions can instantly and reliably confirm identities without sacrificing privacy. This breakthrough supports the scalability of open transaction networks, while building the trust layer that regulators and traditional financial institutions require.
“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 Pat Kinsel, Founder and CEO of Proof. “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.”
First-of-its-Kind Sanctions Credentialing for Institutions
Among the major innovations within the new solution is Proof’s entity-level certification for U.S. sanctions screening — a first for the industry. With this credential, banks, centralized crypto exchanges, wallet services, and other regulated financial institutions can instantly determine whether a counterparty is subject to U.S. sanctions restrictions. This not only improves regulatory compliance but also facilitates smoother integration of digital asset providers into the traditional financial system.
As a centralized credential authority, Proof issues these credentials using secure, tamper-proof cryptographic methods. The result is a system where required due diligence checks can be performed quickly and efficiently — transforming what has traditionally been a slow, costly, and manual process into one that is near-instant, scalable, and reliable.
Lightspark Among Early Adopters of Proof’s Solution
Lightspark — a company building the fastest global open payment network using Bitcoin and the Lightning Network — has adopted Proof’s Certify product to strengthen its compliance framework and improve trust across its transaction network.
“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.”
The partnership reflects the growing demand for identity solutions that meet both regulatory needs and the expectations of modern users seeking speed and simplicity.
Reusable Digital Identities for Consumers
Beyond institutional compliance, Proof also addresses consumer needs with its Certify product — a reusable digital identity credential that allows individuals to verify their identity once and use it across multiple platforms and services. Drawing on its experience securing over $500 billion in transactions across banking, real estate, insurance, and retirement services, Proof brings proven verification methods into the crypto space.
Consumers can now interact across the digital asset ecosystem — sending or receiving crypto, participating in decentralized finance (DeFi), or joining tokenized networks — with greater confidence, knowing their identity is verified and protected.
Streamlined Travel Rule Compliance
A cornerstone of Proof’s solution is its seamless integration with global regulatory requirements, including the Travel Rule — a mandate requiring financial institutions to share certain identifying information for transactions above a threshold. Proof’s digital credential infrastructure enables institutions to automatically share required data securely and in compliance with these mandates.
This not only ensures adherence to legal obligations but also helps reduce friction between crypto-native services and traditional financial institutions. By offering compliant pathways for stablecoin usage and digital asset payments, Proof is accelerating the integration of blockchain-based finance into the global financial system.
A New Standard for Trust in Digital Finance
With its digital credential solution, Proof is laying the groundwork for a trusted digital identity ecosystem in which both individuals and institutions can operate securely, privately, and compliantly. The platform sets a new standard for how digital identity can be verified in real-time, enabling broader adoption of digital assets by reducing risk and regulatory uncertainty.
As digital finance moves toward mainstream adoption, solutions like Proof’s will be critical to building the infrastructure of trust that connects open blockchain systems with the established financial world.
