Kraken is participating in a pilot program for Eightco's INFINITY authentication platform to address challenges related to regulatory compliance and AI-powered fraud.
The exchange did not disclose the duration or evaluation criteria of the pilot.
Exchanges face evolving compliance requirements
Kraken maintains 12 regulatory registrations and licenses, including money services business registrations with FinCEN in the United States and FINTRAC in Canada. All platform users must complete KYC (Know Your Customer) verification to comply with anti-money laundering regulations.
The EU Funds Transfer Regulation implementing the Cryptocurrency Travel Rule came into full force on December 30, 2024. The regulation requires crypto asset service providers to include sender and receiver information in transactions. Although Kraken's pilot is focused on U.S. operations, certification challenges span multiple jurisdictions with varying requirements.
The timing coincides with increased regulatory scrutiny of crypto platforms following several high-profile enforcement actions in 2024 and early 2025.
Identity verification is the target of fraud using AI
Synthetic identity fraud, which uses AI to generate legitimate-looking profiles, accounted for 28% of fraudulent registrations on crypto exchanges in 2024, according to a blockchain analytics firm. An estimated 60% of deposits into fraudulent wallets involved fraud using AI technology.
Deepfake technology can be used to create synthetic identities and voices, bypassing traditional document verification and biometric checks. This method challenges existing KYC processes that rely on government-issued IDs and facial recognition.
INFINITY acts as what Eightco calls a “trust layer” to verify human identity throughout the system. The company says the platform embeds authentication within the application rather than treating it as a separate validation checkpoint.
The announcement did not elaborate on the technical details of how INFINITY achieves AI resistance. Eightco did not respond to requests for additional technical documentation by the time of publication.
According to the company, the platform targets the financial services sector, which represents approximately $35 trillion in global assets, and crypto government bonds, which has nearly $500 billion in assets under management. However, the adoption rate of new authentication technologies in these areas typically spans multiple years.
Funding and market position
Eightco's backers include BitMine, World Foundation, Wedbush, Coinfund, FalconX, Kraken, Pantera, GSR, and Brevan Howard. The company maintains what it calls a WorldCoin vault among its digital assets.
“WorldCoin $WLD is listed as a major supporter,” SamAltcoin_eth said on X, referring to the company's investor relations.
🚨 JUST IN: Kraken is one of America's largest cryptocurrency exchange partners partnering with Eightco $ORBS on INFINITY, the trust layer that verifies human identity across digital finance.
Worldcoin $WLD is listed as a major backer. pic.twitter.com/Zule8wfaek
— SamAlτcoin.eth 🇺🇸 (@SamAltcoin_eth) October 30, 2025
Eightco has indicated plans to expand beyond financial services into gaming, e-commerce, energy and healthcare, but no timelines or partnerships in these areas have been announced.
The authentication technology market includes established players such as Okta and Ping Identity, as well as biometric verification providers such as iProov and Onfido. How INFINITY actually differentiates itself from these existing solutions will depend in part on the results of the pilot program.
Implementation is questionable
The announcement did not specify the technical requirements for the INFINITY integration, the potential costs associated with enterprise implementation, or how the system would interoperate with existing KYC infrastructure. Kraken declined to comment on whether all users or some accounts would participate in the pilot.
Authentication systems add operational overhead. According to the company's official statement, Kraken already has more than 25% of its workforce dedicated to compliance-related tasks. An additional layer of authentication means further infrastructure investment without directly generating revenue.
Whether INFINITY becomes standard across Kraken's platforms after the pilot will depend on factors such as its impact on user experience, false favorability rates, and its actual effectiveness against AI-generated fraud. The exchange has not disclosed metrics for the pilot's success or failure.
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