When traditional financial institutions look to enter the world of Web 3, the biggest hurdle is compliance and stability. This is where Polygon stands out as a trusted hub providing solutions specifically designed to meet institutional requirements in terms of transparency and legality.
Polygon has provided a comprehensive compliance toolkit that includes a Know Your Customer (KYC) system and transaction screening for Anti-Money Laundering (AML). When BlackRock launched bond tokens on Polygon, it leveraged these tools to meet regulatory requirements without building a proprietary compliance system.
Stability is the second element that attracted institutions. The AggLayer system in Polygon provides instant transaction filtering across multiple chains with a fault-tolerance mechanism to ensure continuity.
Finally, Polygon unified the settlement standards across chains, reducing operational costs and increasing efficiency. For this reason, Polygon is expanding partnerships with companies like Franklin Templeton and Walmart to become the institutional infrastructure in the era of Web 3.
