A new trust & identity layer

tbDEX was built from the ground up with trust in mind. The protocol approaches trust differently than other decentralized exchange protocols: it does not rely solely on a trustless model, such as atomic swaps, which significantly limits the types of value exchanges possible. 

Because the reality is, no interface with the fiat monetary system can be trustless; the endpoints on fiat rails are subject to regulations that vary across global jurisdictions. 

Even use cases that do not invoke financial regulations and compliance considerations still benefit from the missing “trust layer” of the internet. A strong trust layer enables counterparties to confidently engage with each other, knowing their counterpart is who they say they are, and has title to the assets they claim they do. 

Built using DIDs and VCs, tbDEX mitigates risk and unlocks access to a world of commercial transactions without the need for centralized intermediaries to broker trust and fulfill compliance obligations.

Core tbDEX pillars

Core to tbDEX’s innovation is the creation of a trust protocol for the exchange of value. This makes bitcoin, stablecoins, other digital assets - and even traditional fiat - more useful by creating a standardized way to establish trust and conduct transactions on the internet through an internet-native value exchange protocol.

Decentralized Identifiers (DIDs) and Verifiable Credentials (VCs) provide a technical solution for the secure exchange of identity information and proof of verification without a centralized intermediary. Used on tbDEX, DIDs and VCs allow two parties to directly negotiate the information they need from one another to complete a transaction.

Jeremy Allaire, Circle’s Co-Founder, Chairman and CEO

“Building an internet financial system requires technological solutions to some of the world’s most stubborn challenges, which lock out billions of people from the digital economy. None is more insidious than the lack of universally portable digital identity and globally harmonized digital wallet naming standards. Together with TBD and, over time, other leading organizations, we aim to make blockchain-native finance and commerce safer, more trusted and simpler to use for people everywhere.”

The power of Verifiable Credentials

  • Authoritative Issuers

    Authoritative issuers, such as a government agency issuing digital proof of identity as Verifiable Credentials.

  • Digital Identity Verification (IDV)

    (IDV) providers globally can play a key role in remotely verifying the information during application for a Verifiable Credential

  • Financial Institutions

    Financial institutions can issue a VC based on the existing identity verification and KYC onboarding processes.

Learn more

Compliance with tbDEX

tbDEX solves a problem that most, if not all, decentralized exchanges cannot. Leveraging foundational identity technologies, tbDEX enables counterparties to establish trust (i.e., that they are who they say they are; that they have title to the assets they claim they do). 

In pioneering the use of VCs to help fulfill the compliance requirements of financial institutions across global jurisdictions (such as KYC, sanctions, and AML checks), tbDEX facilitates the exchange of assets – such as fiat for digital currencies – that previously could only be facilitated with the help of centralized exchanges or intermediaries.

This enables participants to overcome the set of complex challenges that have, until now, hindered mainstream adoption of digital currencies, such as bitcoin.

With tbDEX, compliance teams can:

  • Fulfill regulatory obligations across global jurisdictions

  • Reach more customers globally in a trusted way

  • Enable greater privacy and security of PII

  • Reduce operational costs through reusable credentials

  • Streamline the customer experience

  • Embed verifiable proofs of compliance in any application

tbDEX Trust & Compliance Guides

  • Introduction to Compliance on tbDEX

    Learn how a PFI (Participating Financial Institution) offering services on tbDEX can integrate DIDs (Decentralized Identifiers) and VCs (Verifiable Credentials) into their customer due diligence program.

    Read

  • Known Customer Credentials (KCC)

    To help PFIs get started using tbDEX, explore a standard type of Verifiable Credential that’s specifically designed to fulfill KYC requirements, called the Known Customer Credential (KCC).

    Read

  • On and Off Ramps on tbDEX

    Learn how PFIs can offer On-Ramps and Off-Ramps as a service to Wallets on tbDEX, and the credentials that PFIs can use to fulfill their compliance obligations for these transactions.

    Read

A new standards organization for open payments

To enable mainstream adoption of Decentralized Identifiers (DIDs) and Verifiable Credentials (VCs) in financial applications, TBD is launching a new standards organization in collaboration with Circle and the Linux Foundation. 

The community of open source developers and other leading organizations that believe in an open financial system will be invited to contribute. The compliance and trust frameworks being developed will leverage open standards from the World Wide Web Consortium (W3C), Internet Engineering Task Force (IETF), Decentralized Identity Foundation (DIF), OpenID Foundation (OIDF), and others.

Foundation members will contribute and promote open source standards, including technical specifications, open source software, and reference implementations.

Join the tbDEX ecosystem

Join the tbDEX open source community in building an interconnected global economy built upon open protocols and common standards that’s inclusive and accessible to all.