Institutional Compliance
Recipe - Counterparty Screening
Enforcing KYC/KYB checks on every transfer.
Recipe: Counterparty Screening
This policy enforces that funds can only be sent to addresses that possess a valid Identity Token (e.g., a Soulbound Token representing KYC status).
The Strategy
Define Oracle: Trust a specific Identity Provider contract.
Inspect Recipient: Check if the to address has a balance of the ID token.
Enforce: Revert if balance is 0.
KYC stays in sync
When counterparties lose their credential, policy enforcement updates automatically.
The Policy
import "abis/ERC721.json" as IdentityToken;
permission CounterpartyKyc -> 1.0.0 {
parameters: {
token: address,
recipient: address
}
when: {
IdentityToken.balanceOf(owner: parameters.recipient) > 0,
calldata.to == parameters.recipient
}
}Integration
This replaces "manual address whitelisting." Instead of updating a whitelist every time you have a new counterparty, you simply require them to get verified by your provider. Once verified, they are automatically allowed.