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How Do On-Chain Identity Solutions Interact with Compliance-Focused Token Standards like ERC-3643?

On-chain identity verifies a wallet's compliance status, which the token standard's contract uses to approve transfers.
Greeks.Live16.11.25

How Do On-Chain Identity Solutions Interact with Compliance-Focused Token Standards like ERC-3643?

On-chain identity solutions, such as verifiable credentials or decentralized identifiers (DIDs), attest to a wallet address's real-world identity and compliance status (e.g. KYC/AML complete).

The token standard's smart contract then references this on-chain identity registry to verify if an address is authorized to hold or transact the token before allowing a transfer to execute.

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