Trust Stamp unveils a transformative leap in stablecoin architecture to power GENIUS Act–compliant digital currencies and accelerate regulated payment infrastructure

Rhea-AI Summary

Trust Stamp (Nasdaq: IDAI) unveiled a patent-protected framework to embed biometrically validated, privacy-preserving identity links into stablecoins on Nov 24, 2025. The company cited USPTO Patent #11,681,787 and described binding each stablecoin unit to an irreversibly transformed identity token to create a cryptographic chain of provenance without exposing PII on-chain.

The announcement frames the technology as addressing regulatory pressures from the GENIUS Act of 2025 (which treats permitted stablecoin issuers as financial institutions under the BSA) and FATF warnings about stablecoins' use in illicit finance. Trust Stamp highlighted use cases including GENIUS-compliant payment stablecoins, cross-border corridors, institutional custody, and compliance-ready DeFi.

Positive

• USPTO Patent #11,681,787 covers identity-embedded ownership validation
• Framework enables privacy-preserving cryptographic provenance for stablecoins
• Positions company for GENIUS Act-driven issuer compliance obligations
• ERC-20 “TRUSTED” identity token registered on Wyoming digital asset register

Negative

• Increased regulatory scrutiny as GENIUS Act classifies issuers as financial institutions
• FATF warnings highlight industry risk from stablecoins' use in illicit finance

Insights

Payments & RegTech Analyst

Trust Stamp's patent and GENIUS Act alignment position it as a regulatory‑focused stablecoin infrastructure provider.

Trust Stamp holds USPTO Patent #11,681,787 and describes a method to bind stablecoin units to irreversibly transformed identity tokens while preserving on‑chain privacy. This creates a cryptographically provable chain of provenance and embedded ownership authentication intended for regulated payment stablecoins and compliance workflows.

That framework directly addresses the regulatory requirement that permitted stablecoin issuers now qualify as financial institutions under the GENIUS Act of 2025, which raises AML/CFT and Travel Rule obligations. The firm highlights FATF findings that stablecoins feature heavily in on‑chain illicit activity, which increases demand for compliance‑centric tooling.

Key dependencies and risks include adoption by large issuers, legal acceptance of irreversibly transformed identity tokens as sufficient KYC evidence, and operational integration with custody and payments rails. The claim of a ``quantum‑ready'' posture and biometric linkage adds technical complexity that buyers will need to validate independently.

Monitor concrete milestones: uptake or pilot announcements with major issuers or custodians, any regulatory feedback referencing the approach, and registry or deployment events for the ERC‑20 "TRUSTED" identity token on Wyoming's digital asset register. Expect the next visible signals within 12 months.

ATLANTA, GA, Nov. 24, 2025 (GLOBE NEWSWIRE) -- Trust Stamp. (Nasdaq: IDAI), a global provider of AI-powered trust and identity solutions detailed its patent-protected framework for embedding links to a biometrically validated cryptographic chain of provenance directly into stablecoins while highlighting the growing recognition that stablecoins are being used for money laundering and terrorist financing.

According to recent updates from the Financial Action Task Force (FATF), stablecoins have become one of the most commonly used virtual assets by illicit actors, including North Korean cybercriminals, terrorist financiers, and drug traffickers and most on-chain illicit activity now involves stablecoins. FATF has warned that mass adoption of stablecoins, combined with uneven global implementation of its standards, creates significant loopholes for criminals to exploit.

At the same time, the GENIUS Act of 2025, the United States’ landmark stablecoin law, classifies permitted payment stablecoin issuers as “financial institutions” under the Bank Secrecy Act (BSA), requiring robust anti-money laundering (AML), counter-terrorist financing (CFT), sanctions, and customer identification programs. U.S. Treasury and White House reports have called for direct oversight of systemic stablecoin issuers and recommend that large-scale stablecoin systems include built-in mechanisms to support law-enforcement interventions.

Trust Stamp’s USPTO Patent #11,681,787 reflects the Company’s strategy to position itself as a core infrastructure provider at the intersection of distributed identity and digital asset issuance. The patent covers ownership validation for cryptographic asset contracts using irreversibly transformed identity tokens. This enables the binding of each stablecoin unit to a tokenized, irreversibly transformed representation of the owner’s identity, creating a cryptographically provable link between the asset and a verified owner without revealing personally identifiable information on-chain. The approach allows embedded ownership authentication, a privacy-preserving chain of provenance, and a quantum-ready security posture designed to support emerging regulatory expectations.

Gareth N. Genner, Chief Executive Officer of Trust Stamp, said: “There are urgent needs and opportunities around the proliferation of Stablecoins. With market-ready and mission-critical technologies that include embedded ownership validation, biometrically authenticated wallets and the ERC-20 “TRUSTED” identity token that is registered on Wyoming’s digital asset register, Trust Stamp is uniquely positioned to provide issuers and custodians with privacy protecting post-quantum ownership validation tools.”

John Bridge, Trust Stamp’s President of GovTech and former Chief Inspector of the Financial Surveillance Unit of the United States Marshals Service commented: “Using Trust Stamp, StableKey™  technology, banks and payment providers subject to FATF standards and Travel Rule obligations can leverage embedded identity tokens to streamline cross-border due diligence and evidence beneficial ownership without sharing raw KYC data. There are numerous applications for our patented identity-embedded token framework, including GENIUS-compliant payment stablecoins, cross-border stablecoin corridors, institutional custody and tokenized deposits, and compliance-ready decentralized finance (DeFi) protocols.”

Inquiries:

Trust Stamp: shareholders@truststamp.ai

John Bridge: jbridge@truststamp.ai

About Trust Stamp

Trust Stamp is a global provider of AI-powered services for use in multiple sectors including banking and finance, regulatory compliance, government, healthcare, real estate, communications, healthcare and humanitarian services. Its technology empowers organizations via advanced solutions that reduce fraud, tokenize and secure data and securely authenticate users while protecting personal privacy, reduce friction in digital transactions, and increase operational efficiency, enabling customers to accelerate secure financial inclusion and reach and serve users worldwide.

With team members from twenty-two nationalities in eight countries across North America, Europe, Asia, and Africa, Trust Stamp trades on the Nasdaq Capital Market (Nasdaq: IDAI).

Safe Harbor Statement: Caution Concerning Forward-Looking Remarks 

All statements in this release that are not based on historical fact are “forward-looking statements” including within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The information in this announcement may contain forward-looking statements and information related to, among other things, the company, its business plan and strategy, and its industry. These statements reflect management’s current views with respect to future events-based information currently available and are subject to risks and uncertainties that could cause the company’s actual results to differ materially from those contained in the forward-looking statements. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The company does not undertake any obligation to revise or update these forward-looking statements to reflect events or circumstances after such date or to reflect the occurrence of unanticipated events.

FAQ

What did Trust Stamp announce on November 24, 2025 regarding stablecoins (IDAI)?

Trust Stamp announced a patent-protected framework (USPTO Patent #11,681,787) to embed biometrically validated identity links into stablecoins to create a privacy-preserving chain of provenance.

How does Trust Stamp say its patent helps meet GENIUS Act requirements for stablecoin issuers (IDAI)?

The company says its identity-embedded tokens enable ownership validation and compliance tools aligned with GENIUS Act obligations that treat stablecoin issuers as financial institutions under the BSA.

What are the key use cases Trust Stamp highlighted for its stablecoin identity framework (IDAI)?

Highlighted use cases include GENIUS-compliant payment stablecoins, cross-border stablecoin corridors, institutional custody and tokenized deposits, and compliance-ready DeFi protocols.

Which patent and token registration did Trust Stamp reference in the Nov 24, 2025 announcement (IDAI)?

Trust Stamp referenced USPTO Patent #11,681,787 and an ERC-20 “TRUSTED” identity token registered on Wyoming’s digital asset register.

What regulatory risks did the announcement acknowledge for stablecoins (IDAI)?

The announcement cited FATF warnings about stablecoins being used in illicit finance and noted that GENIUS Act classification increases AML/CFT and travel-rule obligations for issuers.