TRM Labs and Predicate Join Forces to Launch the First Decentralized Policy Infrastructure for Blockchain Applications
San Francisco, CA – February 4, 2025 – Regulators continue to call for enhanced controls in decentralized finance dating back to the US Treasury Department's “Illicit Finance Risk Assessment of Decentralized Finance.” Since then, regulators have taken action, most prominently against Tornado Cash and its founders. And while the 5th US Circuit Court of Appeals recently overturned the Tornado Cash sanctions ruling, regulatory frameworks for digital assets will continue to evolve in the coming years, requiring developers of decentralized applications to navigate compliance. Never has it been more critical to build robust and adaptable compliance tooling and answer the longstanding call of regulators.
As digital assets become entrenched in the global economy, developers, projects, and communities must navigate complex legal, business, and user requirements as they build blockchain-based applications. This requires the use of transaction prerequisites within core technology, including anti-money laundering checks, anomaly detection, rate limits, geolocation capabilities, off-chain data requirements, and compute over historical on-chain information.
In response, TRM Labs, a global leader in blockchain intelligence, has partnered with Predicate, a decentralized transaction prerequisites protocol, to create the first-ever decentralized policy infrastructure. This product sets a new standard that empowers developers to integrate compliance and risk management directly into smart contracts, building on prior industry research defining DeFi as critical infrastructure.
Setting a new standard for blockchain-based applications
The strategic partnership between TRM and Predicate allows crypto businesses and developers to seamlessly leverage TRM’s industry-leading attribution and risk scoring framework for transaction prerequisites within various components of their decentralized application stack — such as smart contracts, solver networks, and routers. TRM will ensure ongoing access and support to identify transactions associated with high-risk activities such as terrorist financing, human trafficking, stolen funds, and child sexual abuse material. Predicate will power the pre-transaction infrastructure, tooling, and network of distributed operators necessary for developers to easily integrate TRM’s risk scores for any on-chain application. Together, Predicate and TRM enable more expressive transactions and controls through an open, verifiable, and ownable network.
“At Predicate, we believe that by streamlining transaction prerequisites we can create better transaction execution patterns,” said Nikhil Raghuveera, co-founder and CEO of Predicate. “Our mission is to enable seamless experiences for developers through a library of pre-transaction requirements that are easy to integrate and enforced in a decentralized and trust-minimized fashion. Through our work with TRM, we are able to offer the sophisticated policy infrastructure necessary for organizations to meet their regulatory and business requirements as they scale.”
“The true promise of blockchain technology is DeFi — financial services offered without a traditional intermediary delivered via a smart contract. As we move closer to a truly decentralized world, it is critical that we build policy, regulatory, and compliance infrastructure that meets that moment,” said TRM’s Global Head of Policy, Ari Redbord. This partnership represents an exciting step forward in the ability for developers to build compliant decentralized services.”
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.
About TRM Labs
TRM Labs provides blockchain intelligence to help law enforcement and national security agencies, financial institutions, and cryptocurrency businesses detect, investigate, and disrupt crypto-related fraud and financial crime. TRM’s blockchain intelligence platform includes solutions to follow the money, identify illicit activity, build cases, and construct an operating picture of threats. TRM is trusted by a growing number of leading agencies worldwide who rely on TRM for their blockchain intelligence needs. TRM is based in San Francisco, CA, and is hiring across engineering, product, sales, and data science. To learn more, visit www.trmlabs.com.
Contact
For media inquiries, contact: contact@predicate.io
Access our coverage of TRON, Solana and 23 other blockchains
Fill out the form to speak with our team about investigative professional services.