IXS Gitbook
  • Welcome to our Gitbook
  • 🏢About IXS
    • Overview
      • Our Mission
      • DARE License
      • Core Team
        • Advisors
      • Partnerships
        • Investors
        • Infrastructure
        • SaaS Partners
      • Roadmap
        • Technical Roadmap
      • Official Links
  • Union Chain
  • Institutional eXchange Settlement Infrastructure
    • Launchpad - Tokenization Layer
    • DEX & Secondary Trading
    • Blockchain & Tokenization Infrastructure for RWAs
    • Regulatory Compliance & Licensing
    • Onchain Tokenized Marketplace & Distribution
  • 👩‍👦‍👦For Institutions
    • Overview
      • Onchain Tokenized Portfolios - Onchain Asset Management
      • Tokenization SaaS - Full Tokenization Suite
  • 👤 For Individuals
    • Overview
      • $IXS Token
        • Buying IXS tokens
          • Exchanges
          • Uniswap Guide
          • Quickswap Guide
          • Adding $IXS / $WIXS to Metamask
        • Bridging tokens
          • Token bridging guide (New) Base
          • Token bridging guide (Old) ETH-POLY
      • Invest in RWAs
        • $HWE
        • $DH
        • Closed Launchpad Deals
  • 📖IXS App Platform Guides
    • Platform User Guides
      • KYC Guide
      • Accreditation
      • Swaps Guide
      • Liquidity Provision
      • Deposits & Withdrawals
  • 🔎Extra Resources and Guides
    • LINE App Guide
      • IXS OA Menu
      • IXS Academy Application [ENG]
      • The IXS Academy App Quests [ENG]
      • How to Transfer Your $5 USDT Rewards from IXS Academy L2E & Start Investing on IXS App
      • IXS Learn-To-Earn Program Guide [ENG]
    • IXS Academy
    • FAQs
  • 📄Other Documentation
    • Smart Contract Audits
    • Media Kit
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On this page
  • 🔑 Key Takeaways:
  • 📌 Introduction
  • 🔍 Understanding KYC
  • 💡 Why is KYC Important?
  • 1️⃣ Security & Trust
  • 2️⃣ Protecting Your Investment
  • 3️⃣ Legal Compliance & Security
  • 4️⃣ Keeping Out Bad Actors
  • 5️⃣ Building Trust with Traditional Finance
  • 6️⃣ Driving Mainstream Adoption
  • 🔎 Conclusion
  1. FAQ

What is KYC?

🔑 Key Takeaways:

✅ KYC for Trust & Security – Verifies users' identities to prevent fraud, similar to showing ID at a bank. This ensures a safer Web3 ecosystem. ✅ KYC as a Bridge Between TradFi & DeFi – Helps integrate real-world assets (RWAs) into blockchain-based finance by ensuring compliance and trust.

📌 Introduction

New to Web3 and decentralized finance (DeFi)? You may have heard the term KYC (Know Your Customer). KYC is a crucial process that verifies user identities, ensuring a secure, compliant, and trustworthy financial environment.

This guide explains why KYC matters and how it protects investors while maintaining regulatory compliance.

🔍 Understanding KYC

KYC is a user identity verification process used across financial services. Just like showing an ID at a bank, KYC ensures that users on a platform are real individuals, preventing fraud, money laundering, and other illicit activities that could harm investors and the broader Web3 ecosystem.

🚀 OTPs are transforming tokenized investing—bridging traditional finance with Web3!

💡 Why is KYC Important?

1️⃣ Security & Trust

  • KYC acts as a "Proof of Identity" system, confirming that users are legitimate.

  • Prevents scams and ensures that all participants are verified individuals.

2️⃣ Protecting Your Investment

  • Confirms ownership rights when investing in tokenized RWAs like real estate or fine art.

  • Prevents disputes and unauthorized transactions that could devalue assets.

3️⃣ Legal Compliance & Security

  • Investing in RWAs through DeFi platforms requires strict adherence to financial regulations.

  • KYC ensures that all transactions comply with global legal standards.

4️⃣ Keeping Out Bad Actors

  • Fraudulent schemes target tokenized assets just as they do traditional finance.

  • KYC creates a barrier against illegal activities, making it harder for bad actors to exploit the system.

5️⃣ Building Trust with Traditional Finance

  • KYC reassures banks and financial institutions that DeFi platforms follow compliance rules.

  • Establishing trust is key to integrating RWAs into mainstream finance.

6️⃣ Driving Mainstream Adoption

  • KYC enables partnerships between DeFi and TradFi institutions, allowing RWAs to be more accessible.

  • Helps make DeFi investment opportunities available to a wider audience.

🔎 Conclusion

Investing in real-world assets (RWAs) via DeFi presents new opportunities—but requires security, legality, and trust. KYC plays a vital role in ensuring these investments remain safe and compliant.

🚀 A leading force in this transformation is IXS, which provides liquidity solutions for tokenized RWAs. With licensed compliance, liquidity pools, and fractionalized ownership models, IXS bridges traditional finance and decentralized finance, ensuring a secure and accessible investment future.

Last updated 1 month ago