Cake DeFi is proud to announce the admission to the Travel Rule Universal Solution Technology (TRUST) membership, a global, industry-driven solution designed to comply with a requirement known as the Travel Rule while protecting the security and privacy of customers.
In February of this year, TRUST launched in the United States. Since then, TRUST has now gone live in Canada and Singapore, and is actively working to expand to other global jurisdictions, including Europe. As more countries begin to implement Travel Rules, TRUST is focused on providing its top-tier compliance services to virtual asset service providers (VASPs) around the globe, including its critical security safeguards.
Since its earlier announcement, TRUST has continued to add many new global entities to the TRUST membership. The TRUST coalition today has over 30 members including: Amber Group, Anchorage, Balance, Binance US, BitGo, bitFlyer, Bittrex, BlockFi, BlocPal, Cake DeFi, Circle, Coinbase, Coinsmart, Coinsquare, Crypto.com, Custodia, Fidelity Digital AssetsSM, Gemini, Kraken, Netcoins, Nexo, Paxos, Robinhood, sFOX, Shakepay, Standard Custody & Trust, Symbridge, Tetra Trust, TradeStation, Unbanked, VirgoCX, Voyager, Wealthsimple, Zero Hash, and Zodia Custody.
Why is TRUST necessary?
The Travel Rule requires financial institutions to share certain basic information about their customers when sending funds over a certain amount to another financial institution. Cryptocurrency platforms as well as custodial cryptocurrency exchanges (like other financial institutions) have to satisfy this rule, which was written before crypto even existed.
To do this, a leading group of crypto exchanges came together to create a solution in the crypto space, while continuing to protect the security and privacy of our customers’ personal information. This unprecedented effort led to a jointly designed solution, TRUST, which will soon become the industry standard for complying with these requirements.
What was the goal in designing the TRUST solution, and how was it achieved?
TRUST is a global Travel Rule compliance solution. While the Travel Rule requirements in many jurisdictions can vary, TRUST is specifically designed with the flexibility to adapt to these different requirements, while delivering the following top-tier safeguards to customers’ privacy and security.
- No central store of personal data: TRUST never centrally stores sensitive customer information where it could be targeted by an attacker or misused by a third party. The required information is only directly sent from one TRUST member to another, through end-to-end encrypted channels, and the receiver is required to safeguard it.
- Proof of address ownership: TRUST includes a mechanism for the receiving VASP to prove that it’s the owner of the receiving crypto address before customer information is sent — to ensure the right information is sent to the right VASP.
- Core security & privacy standards: All TRUST members have to meet core anti-money laundering, security, and privacy requirements before joining the solution.
The rapid expansion of TRUST in the United States and internationally marks a significant milestone in the journey to become the industry-standard solution for Travel Rule compliance. And this is only the beginning. We as Cake DeFi are more than happy to be part of this membership and are looking forward to working together with Coinbase TRUST.