Kraken has joined a pilot program for Eightco’s INFINITY authentication platform, which addresses challenges associated with regulatory compliance and AI-enabled fraud.
The exchange did not disclose the duration or evaluation criteria of the pilot.
Exchanges face evolving compliance requirements
Kraken has 12 regulatory registrations and licenses, including Money Services Business registration with FinCEN in the US and FINTRAC in Canada. All platform users must complete KYC (Know Your Customer) verification to comply with anti-money laundering regulations.
The EU Fund Transfer Regulation, which implements the Crypto Travel Rule, came into full force on December 30, 2024. The regulation requires crypto asset service providers to include sender and recipient information in transactions. While Kraken’s pilot focuses on US operations, the authentication challenges span multiple jurisdictions with different requirements.
The timing coincides with increased scrutiny of crypto platforms following several high-profile enforcement actions in 2024 and early 2025.
AI-enabled fraud focuses on identity verification
According to blockchain analytics companies, synthetic identity fraud, which uses AI to generate legitimate-looking profiles, accounted for 28% of fraudulent crypto exchange registrations in 2024. An estimated 60% of deposits into scam wallets were scams using AI technology.
Deepfake technology allows the creation of synthetic identities and voices that bypass traditional document verification and biometric checks. The methods challenge existing KYC processes that rely on government-issued identification and facial recognition.
INFINITY functions as what Eightco calls a “layer of trust” for verifying human identity between systems. The company says the platform integrates authentication into applications rather than treating it as a separate authentication checkpoint.
The announcement did not detail the technical details of how INFINITY achieves AI resistance. Eightco did not respond to requests for additional technical documentation at the time of publication.
According to the company, the platform targets the financial services industry, which represents approximately $35 trillion in global assets, and crypto treasuries, which approach $500 billion in assets under management. However, adoption rates for new authentication technologies in these sectors typically span several years.
Financing and market position
Eightco’s backers include BitMine, World Foundation, Wedbush, Coinfund, FalconX, Kraken, Pantera, GSR and Brevan Howard. The company maintains what it describes as a Worldcoin treasury among its digital asset holdings.
“Worldcoin $WLD is listed as a major backer,” SamAltcoin_eth noted on X, referring to the company’s investor relations.
🚨 JUST IN: Kraken, one of America’s largest crypto exchange partners with Eightco $ORBS on INFINITY, a trust layer that verifies human identity in 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, although no timeline or partnerships in those sectors 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 distinguishes itself from these existing solutions in practice will partly depend on the results of the pilot program.
Implementation questions remain
The announcement did not specify technical requirements for INFINITY integration, potential costs for enterprise adoption, or how the system would interoperate with existing KYC infrastructure. Kraken declined to comment on whether the pilot affects all users or a subset of accounts.
Authentication systems add operational overhead. According to the company’s public statements, Kraken already allocates more than 25% of its workforce to compliance-related functions. Additional layers of authentication represent further infrastructure investments without direct revenue generation.
Whether INFINITY becomes standard on the Kraken platform after the pilot depends on factors such as the impact of the user experience, false positive figures and the actual effectiveness against AI-generated fraud attempts. The exchange did not disclose the pilot’s success or failure statistics.
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