The tokenization of securities promises new opportunities for liquidity, transparency, and efficiency in financial markets. However, traditional institutional investors require trusted mechanisms for participation that align with strict compliance and regulatory requirements. In this challenge, participants must design solutions that leverage verifiable identity data (such as vLEIs) to enable compliant onboarding of institutional investors, reduce settlement risks in cross-border transactions, and establish secure frameworks for identity-verified tokenized assets on hybrid infrastructures.

Know Your Business (KYB) processes are often manual, slow, and costly for digital asset service providers. By integrating verifiable LEI credentials (vLEIs) with Chainlink’s compliance infrastructure (CCID, Policy Engine, and Accelerators), KYB workflows can be automated, reducing friction and operational costs. This challenge invites participants to design streamlined onboarding processes that maintain real-time compliance monitoring, enable secure participation in tokenized and DeFi markets, and bridge traditional financial messaging standards (e.g., ISO 20022) with blockchain-based verification.

Cross-border payments remain costly and slow, with settlement risks and compliance gaps posing significant challenges. Stablecoins and CBDCs, when coupled with verifiable credentials like vLEIs, offer the potential to transform global payment systems. This challenge calls for solutions that build identity-verified, compliant models for stablecoin or CBDC transfers across multiple blockchains. Participants should demonstrate how these flows can meet regulatory requirements, ensure corporate treasury controls, and support secure settlement for institutional investors while reducing operational risks.