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TEXXR

Chronicles

The story behind the story

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A coalition of crypto companies, including Coinbase, Circle, and Robinhood, announce TRUST, an anti-money laundering platform for securely sharing customer data

Quick Take  — A coalition of US crypto firms has created a centralized solution to the information sharing requirements of the travel rule.

The Block Aislinn Keely

Context & Ripple Effects

TRUST is the compliance answer to a rule that has been hanging over US exchanges since FATF told members to require customer-data sharing between crypto firms moving funds — a mandate the G20 endorsed shortly after. Rather than each exchange building bilateral data pipelines, Coinbase, Circle, and Robinhood are pooling the function into one shared platform.

The move extends a pattern for these firms: Coinbase was already part of an earlier coalition to maintain fair digital-asset markets and prevent abuse, and the same companies later joined Tech Against Scams to coordinate against pig-butchering fraud. TRUST turns that coordination instinct into regulated plumbing.

First-order effects

  • Member exchanges gain a single mechanism for satisfying travel-rule information-sharing obligations when transferring funds between each other, replacing bespoke counterparty arrangements.
  • Non-member US crypto firms still face the same FATF-derived requirement but now must either join TRUST, build their own solution, or restrict transfers with members.

Second-order effects

  • Membership becomes a de facto interconnection standard: exchanges outside the coalition risk thinner transfer liquidity with the largest US venues, pressuring them to adopt or accept exclusion.
  • Compliance cost shifts from per-pair integrations to platform fees and governance, concentrating influence over AML data standards in the founding members' hands.

Third-order effects

  • If the model holds, AML data sharing in crypto consolidates around a small number of industry-run utilities — a structure regulators can supervise through a handful of platforms rather than thousands of bilateral relationships, deepening the divide between compliant incumbents and offshore or non-participating venues.

The trend: Crypto compliance is consolidating from firm-by-firm obligation into shared industry utilities, with incumbent exchanges setting the standards regulators then treat as the market norm.

Discussion

  • @bitfalls @bitfalls on x
    Every single one of these is now the enemy. Take their business. Move your money off of these platforms. Accept crypto in everyday life. Make web3 happen while you still can. https://www.theblockcrypto.com/ ... https://twitter.com/...
  • @jerrycap @jerrycap on x
    Watching SV learn in real time why it costs $ to send $ https://twitter.com/...
  • @bantg @bantg on x
    Anchorage, Avanti, Bitgo, bitFlyer, Bittrex, BlockFi, Circle, Coinbase, Fidelity Digital AssetsSM, Gemini, Kraken, Paxos, Robinhood, Standard Custody & Trust, Symbridge, Tradestation, Zero Hash, Zodia Custody. Remember the builders of narcware 🚩 https://www.theblockcrypto.com/ ..…