Definition
The correspondent-banking compliance model trusts originating KYC/AML checks downstream so counterparties avoid re-executing full compliance at every hop. crypto-credential pilots apply this pattern to stablecoin networks.
Key Points
- Borderless CEO framing: originating compliance trusted downstream (2026-08-05-mastercard-borderless-crypto-credential-pilot)
- Reduces friction but raises privacy/governance questions about shared assurance signals