Trust Stamp details framework for stablecoin architecture

Trust Stamp (IDAI) detailed its patent-protected framework for embedding links to a biometrically validated cryptographic chain of provenance directly into stablecoins while highlighting the growing recognition that stablecoins are being used for money laundering and terrorist financing. According to recent updates from the Financial Action Task Force, stablecoins have become one of the most commonly used virtual assets by illicit actors, including North Korean cybercriminals, terrorist financiers, and drug traffickers and most on-chain illicit activity now involves stablecoins. FATF has warned that mass adoption of stablecoins, combined with uneven global implementation of its standards, creates significant loopholes for criminals to exploit. At the same time, the GENIUS Act of 2025, the United States’ landmark stablecoin law, classifies permitted payment stablecoin issuers as “financial institutions” under the Bank Secrecy Act, requiring robust anti-money laundering, counter-terrorist financing, sanctions, and customer identification programs. U.S. Treasury and White House reports have called for direct oversight of systemic stablecoin issuers and recommend that large-scale stablecoin systems include built-in mechanisms to support law-enforcement interventions. Trust Stamp’s USPTO Patent #11,681,787 reflects the Company’s strategy to position itself as a core infrastructure provider at the intersection of distributed identity and digital asset issuance. The patent covers ownership validation for cryptographic asset contracts using irreversibly transformed identity tokens. This enables the binding of each stablecoin unit to a tokenized, irreversibly transformed representation of the owner’s identity, creating a cryptographically provable link between the asset and a verified owner without revealing personally identifiable information on-chain. The approach allows embedded ownership authentication, a privacy-preserving chain of provenance, and a quantum-ready security posture designed to support emerging regulatory expectations.