AML

cETH operates under a risk-based compliance program proportionate to its institutional, low-volume model. Every bridge transaction is individually reviewed.

Minting cETH is available exclusively to institutional (B2B) counterparties that complete full KYB verification, covering entity identification, jurisdictional review, and beneficial ownership. Mint execution is operator-controlled: every deposit is individually reviewed and screened before any cETH is issued — deposits from unverified parties do not result in a mint. Counterparties from prohibited jurisdictions are not onboarded.

Every mint transaction is individually screened using blockchain analytics for direct sanctions exposure (including OFAC SDN), indirect exposure to sanctioned clusters, and connections to mixers and other illicit-activity clusters. Screening results are documented per transaction. The same screening is applied to every unwrap request before any ETH is released.

Geographic restrictions are enforced at the execution layer of the bridge infrastructure, not only at the interface level.

cETH is issued on Canton through Digital Asset’s Utility infrastructure, whose token framework supports credential-based allowlists and on-ledger blocklist controls embedded in mint, transfer, and burn logic. On Ethereum, the bridge contracts provide independent pause controls for deposits and withdrawals and a daily withdrawal limit, all governed by multisig.