## CIP 0043

<pre>
  CIP: CIP 0043
  Title:  Add TRM as a SV  
  Author: Eric Saraniecki
  Status: Final 
  Type: Governance 
  Created: 2025-02-06
  Approved: 2025-02-24
  License: CC0-1.0
  Post-History: https://lists.sync.global/g/cip-discuss/topic/cip_0043_add_trm_as_a_sv/111037005
</pre>

## Abstract

* Add TRM as a Weight 2.5 SV for providing three services to the Network.
  * Integrating Cantoin Coin with their on-chain AML product.
  * Integrating USDC with their on-chain AML product.
  * Active regulatory engagement and education about Canton and its privacy capabilities.
* TRM Labs commits to provide on-chain AML monitoring of Canton Coin transactions and USDC by no later than 6 months after the approval of this CIP.
* TRM Labs commits to join as a General Member of the Global Synchronizer Foundation.

## Copyright

This CIP is licensed under CC0-1.0: [Creative Commons CC0 1.0 Universal](https://creativecommons.org/publicdomain/zero/1.0/).


## Motivation

* On-chain AML monitoring is critical for supporting parties in the Canton Network that wish to send/receive Canton Coin as a regular part of their business. 
  * On-chain AML monitoring helps senders de-risk outbound transactions by having a better understanding about the legitimacy of the destination address. 
  * Inbound Canton Coin transfers come with information regarding the safety of the incoming Coins from an AML perspective.
* Absent this capability, institutional participants will be limited and hesitant to use Canton Coin as part of their ordinary business activities.
* TRM Labs is one of the requested AML providers by Circle.
* ‘Privacy’ is a dirty word with the conflation of ‘privacy’ with ‘anonymity’ and, in particular, tends to be automatically rejected by regulators. Having a trusted partner engage the regulators about the differentiation of Canton wrt privacy could go a long way. 


In the event that TRM fails to achieve any of the following milestones within the prescribed timeframe, their weight will be reduced by the indicated amount:

 
## Additional Clauses 

* CC integrated with their on-chain AML product within 6 months. If they fail to do so, their SV weight will be reduced by 1.0.
* USDC integrated with their on-chain AML product within 6 months. If they fail to do so, their SV weight will be reduced by 1.0.
* Active regulatory and educational engagement within 60 days.  If they fail to do so, their SV weight will be reduced by 0.25.
* Join as a general member of the GSF within 60 days. If they fail to do so, their SV weight will be reduced by 0.25.

## About TRM Labs

* TRM is on a mission to build a safer financial system for billions of people. We deliver a blockchain intelligence data platform to financial institutions, crypto companies, and governments to fight cryptocurrency fraud and financial crime. We consider our business — and our profit — as a way to move towards our mission sustainably and at scale.

## Changelog

* **2025-02-13:** Initial draft of the proposal.
* **2025-02-24** Approval announced via [mailing list thread](https://lists.sync.global/g/cip-announce/topic/cip_0043_add_trm_as_a_sv/111362875)