zkME, a decentralized identity startup, closed $4 million seed round to build its ZK network

Hong Kong-based zkMe Technology Limited, a decentralized identity startup building with zero-knowledge tech, closed a $4 million seed round led by Multicoin Capital with backing from OKX Ventures and Robot Ventures, the team announced in a statement on Tuesday.

The funding will go towards the continual development of the proprietary appchain zkMe Network, which is expected to launch by the end of the year. zkME is a general-purpose identity layer for web3 applications in need of identity verification and compliance systems.

While the crypto industry has largely embraced pseudonymity and champions financial privacy, it has become clear that exchanges, DeFi protocols, and wallets will need to integrate user controls as regulators continue to draft rules and guidelines.

The network aims to satisfy money-laundering and terrorist financing requirements of the Financial Action Task Force and the E.U.’s incoming MiCA regulations — simplifying the process of coming into compliance.

"zkMe's reusable KYC solution is a game-changer. By empowering users to control their own digital identity and seamlessly reuse their verified credentials, zkMe is not only enhancing privacy and security, but also streamlining the onboarding experience,” said OKX Ventures partner Jeff Ren.

zkME’s product suite is available either through a software development kit or API and includes tools like user identity verification as well as anti-spam bot and other security services.

The project launched in late 2022 and so far counts platforms like Alchemy Pay, Kyberswap and several real-world asset projects as clients.