In the modern financial world, decentralized finance (DeFi) is rapidly evolving, offering innovative solutions for managing digital assets. However, integrating traditional financial institutions with DeFi faces several challenges, including security, regulatory compliance, and user trust. The Kinto project aims to overcome these barriers by offering a modular exchange capable of combining the advantages of both worlds.
Contents:
- Project Overview
- Kinto Architecture and Technologies
- Security Mechanisms and Regulatory Compliance
- Tokenomics and $KINTO Governance
- Project Partnerships and Investments
- Conclusion
Project Overview
Kinto is a modular exchange designed to integrate traditional financial services and decentralized finance (DeFi). The project's primary goal is to provide users with a secure and transparent platform for interacting with various financial instruments. Built on a Layer-2 solution on the Ethereum blockchain, Kinto ensures high transaction speed and low fees, making it attractive to both individual users and institutional investors.
One of Kinto's key features is mandatory user verification (KYC) and wallet insurance, helping to mitigate risks associated with anonymous fraudulent schemes common in DeFi. Additionally, the platform supports both modern financial institutions and decentralized protocols, providing flexibility and broad opportunities for all market participants.
Kinto Architecture and Technologies
Kinto's architecture is based on a modular approach, ensuring decentralization, neutrality, and scalability. Each level of the blockchain architecture is optimized for efficient execution of its functions.
Main components of Kinto's architecture:
| Component | Description |
|---|---|
| Settlement Layer | Uses Ethereum as the settlement layer, providing a mature infrastructure for on-chain financial applications and a censorship-resistant block space. |
| Execution Layer | Partnership with Arbitrum allows Kinto to be the first Layer-2 solution on Arbitrum, granting access to a well-developed and scalable DeFi ecosystem. |
| Data Availability | Integration with Celestia via Blobstream on Ethereum Mainnet ensures secure on-chain data access, improving scalability and data storage efficiency. |
| Sequencer | Initially, Kinto manages its own sequencer, with plans to transition to a decentralized sequencer system in collaboration with partners such as Espresso Systems. |
Unique features of Kinto include mandatory KYC/AML procedures at the blockchain level, the use of only smart contract wallets with native account abstraction, and resistance to Sybil attacks through user verification. These measures enhance security and trust from both users and developers, creating a reliable environment for financial operations.
Security Mechanisms and Regulatory Compliance
Security and regulatory compliance are Kinto's top priorities. The platform implements a mandatory KYC procedure for all users, ensuring compliance with anti-money laundering (AML) standards and fraud prevention. This is achieved through integration with trusted KYC service providers, enabling quick and secure identity verification.
Additionally, each wallet on the platform is insured, providing an extra layer of protection for users. In case of unforeseen circumstances or hacking attempts, users can be assured of their funds' security. The platform also actively monitors suspicious activity and implements blockchain-level fraud prevention mechanisms, ensuring transparency and trust among users and partners.
Tokenomics and $KINTO Governance
Kinto's governance is facilitated through its native token, $KINTO. This token enables community members to participate in key decision-making regarding platform development and management. 70% of the total token supply is allocated to the community, encouraging active participation from users, developers, and partners.
$KINTO tokenomics includes the following aspects:
- Token Distribution: 70% for the community, 20% for the team and advisors, 10% for investors.
- Reward Mechanisms: Active users and developers receive incentives for contributing to the ecosystem.
- Governance: $KINTO holders participate in voting on key decisions, including selecting governance board members and approving protocol changes.
This approach ensures decentralized governance and encourages active community involvement in platform development.
Project Partnerships and Investments
In February 2025, Kinto secured an additional $20 million in an investment round led by Brevan Howard Digital. These funds are allocated for expanding the platform’s functionality and strengthening its market position. Other participants in the round include SkyBridge Capital, Kraynos, Soft Holdings, Deep Ventures, Modular, Tane, and Robot Ventures. Previously, in November 2023, Kinto received $5 million in investments from Kyber Capital, The Spartan Group, and ParaFi Capital, which enabled the development of its Layer-2 network with KYC/AML support. This financial backing highlights investors' confidence in Kinto’s potential to merge traditional and decentralized financial services.
Conclusion
Kinto represents a promising solution for integrating traditional financial institutions with decentralized technologies, ensuring security, regulatory compliance, and operational efficiency. By leveraging Ethereum-based Layer-2, modular architecture, and mandatory user verification, the platform creates a transparent and reliable ecosystem for private and institutional investors. Support from major investors and strategic partnerships strengthens Kinto’s position, making it a key player in the evolution of financial technologies.
