August 2022. A counterparty already on the sanctions list. The payment goes out in USDT - the issuer doesn't block on designation, so it confirms and settles like any other transfer. Send the same value in USDC and the token itself would have refused it; on a permissionless rail you don't get to choose what your counterparty holds.
Screening happens afterward: a disclosure filed, the transfer still standing. Enforcement that depends on which coin moved isn't enforcement.
The fix is a permission check before settlement - run beside the rail, not by it.
- identity issued by LTIN
- checked by Zilliqa before a transaction settles
That is what this partnership is built for.
Post #1280
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Zilliqa Announcement A new chapter, not a new pitch. LTIN and Zilliqa first started building together at LTIN's launch last October; today it becomes a partnership, which creates a new category. LTIN issues the verifiable identity; Zilliqa runs the neutral check that confirms…
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