The AI-powered Layer-2 tokenization network Singularity Finance has taken a key step towards simplifying compliance for real-world assets by partnering with Crymbo.
By integrating its infrastructure with Crymbo’s novel unification layer for digital asset compliance, Singularity Finance makes it possible for trading counterparties to share fragmented on- and off-chain transaction data in a secure and trust-minimized way, ensuring adherence with key financial regulations like the FATF Travel Rule.
Singularity Finance was created by a merger between SingularityDAO, Cogito Finance and SelfKey, and has built a Layer-2 network for tokenizing assets within the AI economy, including the graphics processing units that power large language models. SingularityDAO provides the necessary financial management expertise, while Cogito handles the actual tokenization process, and SelfKey ensures privacy, compliance and security through its decentralized identity technology.
In tokenizing GPUs and other essential AI assets, such as data, Singularity Finance is making the AI economy more liquid and accessible, so that anyone can invest in it. But despite making the AI industry more accessible, compliance still causes headaches for many organizations, preventing their participation.
Crymbo has created a decentralized oracle for on- and off-chain compliance data that anyone can validate in real time. It allows tokenized assets to demonstrate full compliance in an immediate, privacy-preserving way.
The oracle is designed to enable the secure and seamless transfer of information. All data exchanged between users is encrypted. Only the sender and receiver have access to the data, not even Crymbo itself can view the information.
The ability to streamline compliance will go a long way towards speeding up adoption of tokenized RWAs. Because they now have an easy way to prove compliance, it makes RWAs more palatable to financial institutions that must adhere to strict global regulations.
Many RWAs require KYC and AML processes to support regulatory compliance, which Crymbo manages for clients while also adhering to privacy standards through its encryption feature. For instance, the FATF Travel Rule is noted as a critical compliance standard created by the Financial Action Task Force, which is a global body that establishes guidelines around anti-money laundering and countering the financing of terrorism rules.
The integration eliminates the need for numerous cumbersome processes that were previously required to validate compliance. Traditionally, enterprises would have to connect to multiple technology platforms and send and respond to regular emails in order to demonstrate that everything is above board. But with Crymbo’s oracle, users can leverage the Oracle Explorer to access transaction information, and if both parties are already connected to the oracle, the required information is exchanged automatically, eliminating manual effort and ensuring efficiency.
“With Crymbo Oracle, achieving compliance becomes effortless,” a spokesman from Singularity Finance said. “Moreover, it is an upgradeable solution that’s designed to adapt seamlessly as regulations evolve, ensuring your business stays ahead of the curve.”
