Kraken has begun testing Eightco’s INFINITY authentication platform to strengthen identity verification and regulatory compliance. The exchange did not disclose the pilot’s duration or evaluation metrics. The program focuses on US operations, but identity risks span global markets.
Eightco positions INFINITY as a “trust layer” that embeds authentication inside applications. This approach aims to prevent deepfakes from bypassing document checks or basic biometrics. The company has not released detailed technical specifications or interoperability guidance.
Blockchain analytics firms that reported on synthetic identity fraud found that it was responsible for 28% of fraudulent exchange registrations in 2024. They also estimated that 60% of deposits into scam wallets were scams that utilized AI. These trends mean that the pressure is on exchanges to strengthen verification flows without making them unduly frustrating.
Kraken lists 12 regulatory registrations and licenses, including FinCEN in the United States and FINTRAC in Canada. The exchange requires all customers to complete KYC to support anti-money-laundering controls and sanctions screening.
Rules are also continuing to expand across jurisdictions. The Transfer of Funds Regulation of the European Union, which implements the crypto Travel Rule, became effective on December 30, 2024. While Kraken's pilot is in the US, identity checks must comply with cross-border requirements and different record-keeping requirements depending on the market.
Regulators also tightened oversight after several enforcement actions in 2024 and early 2025. Kraken says it already assigns over one-quarter of its staff to compliance work. Additional authentication layers add system complexity and cost, allowing the pilot to test both user experience and risk reduction.
Eightco lists backers such as BitMine, World Foundation, Wedbush, Coinfund, FalconX, Kraken, Pantera, GSR, and Brevan Howard. The company also maintains a Worldcoin treasury among its digital assets. An X user, SamAltcoin_eth, noted that Worldcoin $WLD appeared as a key backer.
Eightco targets financial services, which manage approximately $35 trillion in global assets, and crypto treasuries, which are valued at $500 billion. Adoption of new authentication systems in these sectors often takes years. Established competitors include Okta and Ping Identity, as well as biometric firms such as iProov and Onfido.
Implementation details remain limited. Eightco has not outlined integration requirements, pricing, or how INFINITY connects to existing KYC vendors. Kraken did not say whether the pilot covers all users or a subset. Results will hinge on fraud reduction, false positive and false negative rates, and overall usability.
Eightco also signals plans to expand into gaming, e-commerce, energy, and healthcare. It has not announced partners or timelines for those markets. Any rollout would depend on the outcomes of the pilot and the demand from the enterprise. Clear documentation on standards support and data governance would also be helpful to potential adopters. Stakeholders await pilot milestones.
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