Solana Launches New Tool for DeFi KYC and User Verification

Monicah W

The Solana Foundation has launched the Solana Attestation Service (SAS). This is a decentralized identity verification protocol designed to simplify compliance and enhance trust across the network.

Announced on May 23, the tool allows applications to validate off-chain data, such as Know Your Customer (KYC) checks and user accreditation. It does this without directly handling sensitive user information.

Solana Launches Identity Layer Amid Rising Global Crypto Interest

Solana Foundation said SAS introduces cryptographically signed, reusable credentials that trusted parties can issue. Once verified, users can seamlessly interact with multiple platforms without repeating onboarding or verification steps.

“SAS enables compliance, access control, reputation systems, and programmable identity across the Solana ecosystem. It’s a better, easier experience for both end users and builders,” the Solana Foundation stated.

This design removes the need for developers to maintain identity backends, significantly lowering the barrier for integrating compliance features.

According to the Foundation, SAS supports a wide range of use cases. These include DeFi compliance, access control in blockchain games, Sybil resistance in DAOs, and location-based verification for connected devices.

Builders can use the tool to enforce region-based restrictions, establish user uniqueness, and create programmable reputation systems.

SAS marks the first release from the newly established Solana Identity Group, a coalition of contributors including Civic, Solana.ID, Solid, Trusta Labs, and the Foundation itself. The group aims to develop privacy-preserving identity primitives tailored for the Web3 era.

Meanwhile, the launch comes amid rising interest from traditional finance in Solana’s infrastructure. Nzube Ezido, country lead for Solana Superteam NG, described SAS as a critical piece of the network’s evolving financial stack.

“This might be one of the most important primitives launched in a very long time. As we quickly ramp up on the capital market narrative, oracles that keep RWA in sync will need this to offer trust for on-chain to off-chain state,” Ezido stated.

Over the past months, several traditional financial institutions have been exploring the network’s potential for asset tokenization due to its speed, scalability, and low fees.

This is evidenced by the fact that R3—a blockchain infrastructure provider with over $10 billion in assets on its Corda platform—was partnering with Solana. The collaboration aims to onboard clients like HSBC and other major financial institutions to leverage the network’s features.

At the same time, Kraken, a major US-based exchange, announced plans to use Solana’s infrastructure to enable international trading of US-listed stocks.

Market observers said these collaborations reflect Solana’s growing role in bridging real-world finance and blockchain infrastructure.

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Galaxy Digital Moves $100 Million in Ethereum: Strategic Shift or Sell-Off Signal?

Galaxy Digital, a leading crypto investment firm, has recently captured the crypto community’s attention. The firm recently transferred massive Ethereum (ETH) holdings to centralized exchanges. 

The move comes when the crypto market navigates significant volatility, prompting investors to question whether this signals a major sell-off or reflects Galaxy Digital’s strategic portfolio management.

Galaxy Digital’s Persistent ETH Transfers to Exchanges

On-chain data reveals Galaxy Digital has executed a series of substantial ETH transfers to major exchanges in less than a week. On the morning of April 18, 2025, the firm sent 12,500 ETH, valued at approximately $20 million, to Binance. 

Just a day earlier, on April 17, Galaxy Digital moved 12,181 ETH, worth around $19.02 million, to another centralized exchange. On April 16, an additional 12,500 ETH, valued at $20.31 million, was transferred to Binance. On April 15, another transaction involving 12,500 ETH and 5 million USDT was sent to the same platform.

In total, Galaxy Digital has moved a significant volume of ETH, worth over $100 million, out of its wallets in a short period. The scale and frequency of these transactions have sparked widespread speculation about the firm’s true intentions.

Sell-Off or Strategic Restructuring?

Large-scale ETH transfers to exchanges are often interpreted as a precursor to selling. If Galaxy Digital is offloading ETH, it could exert downward pressure on the asset’s price, particularly given the current market uncertainty.

ETH’s price has already declined significantly from its cycle peak. And Galaxy Digital’s transactions could amplify bearish sentiment among investors.

However, not all exchange transfers equate to a sell-off. Galaxy Digital might be preparing for other activities, such as providing liquidity for its financial products or executing swaps to diversify its portfolio. Still, these transfers’ sheer volume and rapid pace have raised concerns about their potential impact on ETH’s price.

Adding to the intrigue, these transactions coincide with Christine Kim’s resignation as Galaxy Digital’s Vice President of Research.

Kim, a well-known Ethereum expert, recently left the firm to pursue her ventures. While no direct evidence links her departure to the ETH transfers, the timing has fueled speculation about whether Galaxy Digital is reevaluating its stance on Ethereum.

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