zkMe Secures $4M to Develop Compliant Identity Solutions for Web3 Applications

zkMe Technology Limited, a leader in zero-knowledge (ZK) identity verification solutions, announced it has secured $4 million in a seed round led by Multicoin Capital, with participation from OKX Ventures and Robot Ventures. The funding will support the development of the zkMe Network, a neutral zero-knowledge identity layer designed for Web3 developers requiring identity verification and compliance. The network is set to launch by the end of Q4.

The investment comes at a critical time as regulatory pressures on decentralized financial services increase. With the EU's Markets in Crypto-Assets (MiCA) regulation set to take effect in 2025, mandating Know Your Customer (KYC) procedures for all crypto transactions, and the Financial Action Task Force (FATF) intensifying its focus on anti-money laundering measures, the crypto landscape is rapidly evolving.

zkMe positions itself as the only decentralized KYC provider ready for FATF standards, offering Web3 teams a comprehensive suite of credential verification solutions. These include robust anti-bot and anti-sybil measures, full-fledged KYC and Know Your Transaction (KYT) capabilities, all available via SDK or API. This suite aims to streamline compliance, enhance data security, and simplify regulatory complexities while adhering to the privacy-first ethos of Web3.

"The regulatory landscape is shifting rapidly, with enforcement actions on the rise and MiCA regulations looming in 2025. Crypto companies need to act decisively now. Embracing compliant, decentralized KYC solutions like zkMe isn't just about avoiding penalties, it's about securing the future of your business and upholding the fundamental right to privacy for your users," stated Alexander Scheer, CEO and Founder of zkMe.

zkMe's identity verification solutions are powered by the zkMe Protocol, the world's first FATF-compliant, zero-knowledge know-your-customer (zkKYC) protocol, and the zkMe Network, a proprietary appchain. By shifting zero-knowledge proof (ZKP) generation from server-side to client-side before on-chain verification, zkMe eliminates latency issues and data breach risks associated with traditional server-side models, ensuring users maintain full control over their data. The zkMe chain then stores proofs in a neutral, decentralized layer, creating a trustless, self-sovereign, privacy-preserving bridge between credentials and any blockchain.

"zkMe's client-side approach to identity verification is the first-order correct way to do identity verification and compliance in the MiCA age," said Kyle Samani, Managing Partner at Multicoin Capital. "We are excited to partner with zkMe as they continue to build a decentralized and trustless identity infrastructure for the future of the internet."

Since its inception in December 2022, zkMe's technology has been adopted by over 60 Web3 projects, facilitating over 650,000 consumer attestations. Its diverse clientele includes platforms like Alchemy Pay and Kyberswap, along with prominent launchpads and Real-World Asset (RWA) projects. The zkMe SDK, built on Cosmos and EVM compatible, offers broad chain support with over 20 integrations, making it the most versatile solution in the market. This SDK enables Web3 developers to seamlessly integrate self-sovereign identity and verifiable credentials into their applications, ensuring security and privacy while providing tools for creating, managing, and verifying credentials.

The latest funding round will accelerate zkMe's roadmap, encompassing the decentralization of current products and the completion and launch of their appchain.