IMF, JPMorgan and Central Banks Back Tokenized Asset Compliance

A white paper from Global Layer One (GL1), published June 22, 2026, proposes a programmable compliance framework for tokenized financial assets. Contributors include the International Monetary Fund, Banque de France, Kinexys by J.P. Morgan, the Monetary Authority of Singapore, Standard Chartered, the BIS Innovation Hub, Chainlink Labs, GLEIF and Bermuda.

The paper sets out an architecture for embedding compliance controls into token flows so issuer rules and regulatory policies can be checked before transfers, swaps or settlements occur. The controls are described as acting at the transaction level rather than after settlement.

Authors outline techniques that let issuers verify permissions and apply restrictions without exposing transaction details on public ledgers. The paper highlights privacy-preserving tools such as zero-knowledge proofs to demonstrate compliance while keeping amounts, counterparty identities and asset types confidential.

Bermuda, which contributed privacy-focused work, noted that full public-chain transparency can expose counterparties, amounts and asset types. The firm warned that total opacity can leave issuers and regulators with blunt enforcement options and described an approach using client-side zero-knowledge proofs that can operate on EVM-compatible networks without requiring smart contract rewrites.

Jan Philipp Fritsche, co-founder of Bermuda and a former European Central Bank official, stressed that enforcement requires precision and that imprecise tools can force issuers into broad measures that affect compliant users. He argued privacy-preserving proofs can help distinguish high-risk activity from legitimate transactions.

The paper also discusses standard identifiers and data formats, noting input from GLEIF on legal entity identifiers to support automated checks while keeping sensitive details private.

GL1 presents programmable compliance as a set of building blocks — policy definition, private proofing and selective disclosure — and calls for further technical work and cross-industry coordination to develop interoperable systems for regulated digital-asset activity.