The blockchain ecosystem demands sophisticated compliance solutions that don't compromise on decentralization or developer experience. Today, we're excited to announce Plume's partnership with Predicate to bring modular, decentralized compliance infrastructure to the RWA-scaling landscape.
Building Decentralized Compliance Infrastructure with Predicate
The Predicate Network enables developers to integrate transaction prerequisites into their application through a modular approach. It is designed to be transparent, verifiable, and open. Any entity—whether an individual, organization, or DAO—can create, manage, and own their prerequisites through Predicate.
As an RWA-scaling blockchain, Plume needs to foster a unique ecosystem that meets the needs of crypto-native builders and traditional financial institutions. Think of Plume as a nation-state establishing a sophisticated economy, with policies governing entry and interaction within its borders. This requires setting foundational standards for the chain while allowing flexibility for users and dapps. Crucially, the ecosystem needs healthy liquidity that is not originating from illicit finance.
Plume is working with Predicate to build and enforce policies at the smart contact level for its token bridges. Specifically, Predicate is used to set rules that restrict the inflow of assets originating from sanctioned entities, without altering the user experience or requiring any form of KYC. The Predicate Network builds a real-time dynamic blacklist based on sanctioned addresses, as identified by the Office of Foreign Assets Control, and their counterparties. Based on this blacklist, the Predicate Network validates inbound assets to the Plume Network. The entire system is trust-minimized by leveraging a distributed operator network, powered by EigenLayer, that builds the blacklist and also enforces Plume’s policies. These operators reference the policy and issue signatures for each transaction. Signature issuance is deterministic, and any bridging attempt without a valid Predicate signature is automatically rejected.
Looking Ahead
Token bridges are just a first step in Plume’s collaboration with Predicate. Predicate enables expressive transaction prerequisites that meet a broad set of needs for applications and tools built on Plume.
For example:
- A tokenization project can implement custom flow of fund checks and integrate offchain risk score providers, such as TRM or Elliptic, to identify addresses linked to exploits, human trafficking, or terrorist financing.
- A US-based yield-bearing asset project could enforce a geolocation policy to restrict access from certain markets due to securities regulations.
- An RWA project can establish rate limits and leverage multiple KYC solutions across Plume and other chains.
In all of these cases and more, builders on Plume can seamlessly implement pre-transaction logic using Predicate. Together, Plume and Predicate are building a new standard for expressive and decentralized policies, fostering a robust onchain ecosystem.
About Plume
Plume is the first public L1 blockchain purpose-built for RWAfi, enabling the rapid adoption and demand-driven integration of real world assets. With 180+ projects building on the network, Plume offers a composable, EVM-compatible environment for onboarding and managing diverse real-world assets. Coupled with an end-to-end tokenization engine and a network of financial infrastructure partners, Plume simplifies asset onboarding and enables seamless DeFi integration for RWAs so anyone can tokenize real world assets, distribute them globally, and make them useful for native crypto users.
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About Predicate
Predicate is a network for simplifying transaction prerequisites. Through Predicate, users, developers, and communities define rules for on-chain interactions, integrating expressive pre-transaction logic into decentralized applications. These rules, like legos, can be stacked to form policies, which are enforced by the Predicate Network. For more information, visit: predicate.io.