03 — Travel Rule

How DIDs solve the Travel Rule

The FATF Travel Rule requires VASPs to identify counterparties for transfers above threshold. W3C DIDs provide the verifiable, decentralized identity layer that makes this possible without a central registry.

Journey Map — Cross-Border Stablecoin Transfer

Eight stages from intent to reporting. Gates at sanctions screening and threshold verification block non-compliant transfers. Hover any stage for protocol details.

TRAVEL RULE JOURNEY MAPCross-Border Stablecoin Transfer — 8 StagesIntentDID LookupCredential ExchangeSanctions ScreenThreshold CheckVASP VerificationSettlementReportingCHECKPOINTSGate (blocks if failed)Obligation (post-settlement)Cross-Border Route

Interactive Demo — Travel Rule Simulation

Watch a step-by-step simulation of a cross-border USDC transfer between two DID-identified VASPs. Each step shows which W3C standard is being used.

Originating VASP
Alpha Exchange
did:web:alpha-exchange.com
US — GENIUS Act
Beneficiary VASP
Beta Financial
did:web:beta-financial.io
EU — MiCA

Compliance Flow — 8 Steps

○
Resolve Originator DID
W3C DID Core
W3C DID Resolution → Originator VASP DID Document retrieved
○
Resolve Beneficiary DID
W3C DID Core
W3C DID Resolution → Beneficiary VASP DID Document retrieved
○
Exchange Credentials via TAP
Notabene TAP
Notabene Transaction Authorization Protocol → Verifiable Credentials exchanged
○
Sanctions Screening
FATF / OFAC
OFAC + EU consolidated list check → No matches found
○
Threshold Verification
FATF Travel Rule
Amount €2,500 exceeds €1,000 threshold → Travel Rule applies
○
VASP License Verification
Travel Rule Registry
Counterparty registered & licensed → Compliance verified
○
Settlement
ERC-20 / Base
USDC transfer on Base finalized → tx: 0x7a2e...c9f4
○
Reporting Obligation
STR / CTR Filing
STR/CTR filed → Audit trail anchored to blockchain

Transfer Details:

Amount
€2,500 (USDC)
Network
Base (Layer 2)
Travel Rule Applies
Yes (€2,500 > €1,000 threshold)
Compliance Status
Pending

The DID Advantage for Travel Rule

Without DIDs, Travel Rule compliance requires centralized registries or bilateral agreements between every VASP pair. With DIDs, any VASP can resolve any counterparty's identity independently — no central authority, no registry lock-in.

Notabene's network demonstrates this at scale: each VASP entity gets its own DID, and the Transaction Authorization Protocol routes compliance data between counterparties using these identifiers.