zkKYB - Know Your Business
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Credentials for Entity Verification
This section includes zkMe’s zkKYB credentials designed for corporate identity verification, ultimate beneficial ownership checks, and entity-level due diligence.
Onchain UOB
Onchain vLEI
Want to explore more use cases? Check out our other credential suites at Catalog - All Credentials.
User Journey
A business ("Business Alpha") wants to access a regulated DeFi platform. The platform requests a business verification.
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Why Business Verification Matters
Anti-Money Laundering (AML) checks are a legal requirement for financial institutions and many virtual asset service providers. For businesses, this is known as Know Your Business (KYB). The goal is to prevent bad actors from using corporate structures to hide illicit activities like money laundering or terrorist financing.
Why zkMe zkKYB?
Traditional KYB processes are poorly suited for Web3. They require businesses to repeatedly submit sensitive corporate documents to various platforms, creating multiple points of failure for data breaches. zkMe's zkAML for businesses transforms this by enabling the necessary compliance checks in a way that protects sensitive corporate data and aligns with the decentralized nature of Web3.
Privacy-Preserving Architecture: zkMe uses advanced ZKPs to ensure that even the verification service cannot determine why a business passed or failed a check—only that it meets the compliance criteria.
FATF-Compliant Decentralization: zkMe is positioned as the only fully decentralized KYC provider that also meets FATF compliance standards, a principle that extends to its KYB offerings.
Interoperable Credential System: The protocol is designed for a multi-chain world. The zkKYB credential and vLEI can be used across different blockchain ecosystems, making them versatile tools for global business.
The table below compares the core concepts of traditional KYB with the proposed zkKYB model to highlight the fundamental shifts.
Data Handling
Centralized storage of raw business data
Verification without exposing raw data; user-controlled credentials
Privacy
Business information vulnerable to breaches
Zero-Knowledge Proofs (ZKPs) prove facts without revealing underlying data
Compliance
Manual, repetitive checks for each service
Reusable, ZKP-based credentials that satisfy AML/KYC requirements
Process
Slow, costly, and redundant onboarding
Automated, efficient verification and reusable credentials across platforms
How It Works
The procedure for businesses uses ZKPs to verify a company's legitimacy and compliance status against trusted data sources without exposing private information.
Document Verification & Data Extraction:
Authenticity Check: The system confirms that uploaded business documents (e.g., registry extracts) are valid and untampered.
OCR Extraction: Key details like company name, registration number, legal address, and director names are extracted.
AML Database Screening: The extracted information is checked against global sanctions lists, PEP registries, and adverse media sources in a privacy-preserving manner.
vLEI & zkKYB Credential Issuance: Once verification is complete, the system issues two credentials:
A vLEI SBT that serves as a universal, on-chain proof of the business's legal identity.
A zkKYB SBT that contains ZKPs of the business's good standing and clean AML status.
Zero-Knowledge Proof (ZKP) Protocol:
Commitment: The business's wallet generates a cryptographic commitment based on its credentials.
Challenge & Response: A verifier (e.g., a DeFi platform) sends a random challenge. The wallet computes a response using its private data and the challenge.
Verification: The verifier checks the response against the public verification key. A valid proof confirms the business meets all criteria without revealing any underlying data.
Key Benefits of zkKYB with vLEI
Uncompromising Corporate Privacy: Businesses can prove their eligibility and compliance without exposing sensitive corporate documents or the personal details of their directors, protecting them from data breaches and corporate espionage.
Streamlined Global Operations: The combination of a reusable zkKYB credential and a globally recognized vLEI drastically reduces onboarding friction. A business verified once can access multiple services across different jurisdictions and chains seamlessly.
Regulatory Compliance by Design: The system is built to satisfy global AML/KYC and FATF regulations. It provides the necessary, cryptographically assured audit trail for regulators without forcing platforms to handle raw data.
On-Chain Identity for Enterprises: The issuance of a vLEI on-chain provides a foundational layer of trust for the entire ecosystem of decentralized applications, enabling everything from compliant DeFi to verifiable supply chain finance.
Use Cases to Benefit
DeFi and Institutional Finance: Permissioned DeFi pools and institutional lending platforms can use zkKYB and vLEI to ensure that all participating entities are verified and compliant, opening up trillions in institutional capital.
Supply Chain Finance: Companies can prove their legitimate business status to participate in decentralized supply chain financing networks without disclosing confidential supplier relationships or internal financial data.
Real-World Asset (RWA) Tokenization: Platforms tokenizing assets like real estate or commodities can use zkKYB to verify the legal standing of issuers and investors, ensuring regulatory compliance throughout the asset's lifecycle.
DAO Treasury Management: Decentralized Autonomous Organizations (DAOs) can implement zkKYB checks for entities that interact with their treasury, mitigating risk and providing accountability to their members.
Web3 Gaming and Metaverse Economies: Game publishers and virtual world creators can partner with verified businesses for in-game asset launches or virtual land sales, ensuring legitimate corporate participation.
Pricing & Integration
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