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Circle and Paxos pilot “know‑your‑issuer” with Bluprynt to trace tokens to verified issuers, curbing counterfeit stablecoins and aiding auditors and regulators amid new U.S. rules

August 29, 2025 //  by Finnovate

Stablecoin heavyweights Circle Internet Group Inc. and Paxos Trust Co. have piloted a new way to prevent copycats and help companies verify their digital asset holdings. The firms partnered with Bluprynt, a fintech startup using cryptography and blockchain technology to provide issuer verification when stablecoins are released by a company. The pilot provided a way to trace back a token to the verified issuer, using Bluprynt’s technology. Bluprynt’s technology gives “provenance upfront, reducing complexity, and providing regulators and investors with the transparency they need.” He noted that could help curb losses due to counterfeit tokens and impersonation attacks. It’s another sign that parts of the digital asset industry are maturing as they seek to meet new regulatory requirements being established in jurisdictions across the globe. Stablecoins are digital assets pegged to non-volatile assets, such as US dollars, and can be used as a cash equivalent for payments. The technology could benefit auditors, financial crime-fighters, and investors. Circle’s USDC is the second-largest stablecoin by market value, and Paxos issues and operates the blockchain infrastructure behind PayPal Inc.’s stablecoin, PYUSD. The number of firms offering stablecoins is expected to grow with the recently-enacted GENIUS Act, which provides a framework for dollar-backed stablecoins.

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Category: Cybersecurity, Innovation Topics

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