‘’We’re embracing the future with crypto and leaving the slow and outdated big banks behind’’, President Donald Trump declared, signaling a shift in his administration’s approach to digital assets.
The vision was formalized on Thursday, when signed an executive order establishing a working group on digital asset markets. The order reaffirms the administration’s commitment to key crypto principles, including coding transparency, self-custody, and fair banking access, aiming to integrate blockchain technology responsibly into the U.S. financial system.
This idea of blending blockchain with traditional financial systems is bold, and Graphite Network offers the means to make it happen with its scalable and compliant solutions tailored to meet the modern financial needs of banks and financial institutions of all sizes.
Speaking to crypto.news, Graphite Network CTO Marko Ratkovic said:
“While it’s clear that the world is changing and the new US administration is becoming more open to cryptocurrencies, concrete regulations are still up in the air. What’s certain, though, is that Graphite Network offers the infrastructure banks need to make this transition. We can help traditional finance connect with the decentralized economy, and this support is just as important for mass adoption as the regulations will be.”
Bank Integration Demo is built to address pressing challenges facing financial institutions as they struggle to implement blockchain adoption on their own through:
- Building Reliable Infrastructure: Graphite Network’s blockchain is built on a Proof-of-Authority Polymer 2.0 consensus mechanism, ensuring high security, scalability, and energy efficiency. This will assist financial institutions in adopting blockchain technology without compromising their existing and legacy business.
- Bridging Compliance and User Empowerment: By integrating ZKP-based KYC processes and reputation scoring, Graphite Network bridges the gap between institutional requirements and user autonomy.
- Strategic Partnerships: Graphite Network continues to collaborate with banks and other financial institutions and tailoring blockchain solutions to address any specific needs.
Other bank-compliant Graphite Network’s features
Predictable Fees, Even During Peak Activity
Graphite Network’s Layer 1 blockchain is built to keep fees reasonable, even during periods of high network activity. For banks and financial institutions, this predictability is crucial for managing costs and ensuring smooth operations. In contrast, Ethereum lagged in 2024, with fees spiking unpredictably — averaging $3.52 per transaction during peak times. Such volatility can disrupt cost projections and scalability, making Graphite Network a more reliable choice for institutions integrating blockchain technology.
Non-Intrusive KYC
Graphite Network’s optional KYC system is a game-changer for balancing privacy and compliance. The system is built with Zero-Knowledge Proof technology which allows third parties to verify user data such as age or location without revealing personal information. This ensures data security and privacy while providing regulatory agencies and financial institutions with a verifiable, compliant system. User data submitted during the KYC process is kept off-chain to minimize the likelihood of data breaches or unauthorized access.
Trust Score and Interaction Preferences
Graphite Network’s Trust Score reflects a user’s reputation based on things like their KYC status, transaction history, account activity, and interactions with others. It even looks at whether any fraud claims are associated with their account. However, Graphite Network doesn’t impose strict rules—it lets users decide how they want to manage their interactions. They can choose whether to complete KYC, who to engage with, how to filter transactions, and more. This flexibility is important because it gives users control over their own decisions.
For banks, this is useful because it allows them to have insight into the trustworthiness of users without forcing everyone into a one-size-fits-all system. Banks can also benefit from knowing that users can set their own preferences while still maintaining the ability to track and assess risk through the Trust Score.
Reputation-Based Smart Contracts
Graphite Network will also provide tools for banks and businesses to develop smart contracts that consider reputation metrics, enabling customization of services for targeted user groups. A bank, for example, could create a contract to issue loans only to customers with verified credit scores or a history of account activity, meeting both business objectives and regulatory standards.
Directed Fund Management
Graphite Network is planning to introduce tagged addresses to improve transparency and accountability in blockchain transactions. These addresses will be linked to specific purposes, such as business-related payments or loan servicing, ensuring that funds are directed where they’re intended. For example, if a bank transfers funds to a loan repayment-tagged address, it will be clear that the payment is for that purpose. If the funds are later misused — say, spent on unauthorized transactions — the system will flag it immediately.
Additionally, smart contracts will be able to block transactions from suspicious addresses, adding an extra layer of security. While this feature isn’t live yet, it’s a significant step toward making blockchain transactions more secure and trustworthy for financial institutions.
Equitable Rewards, Directly from the Blockchain
Earlier, crypto.news reported that Graphite Network is the first platform enabling transport (or entry-point) node operators to earn directly from its blockchain through a dual-layer node system. Entry-point nodes onboard transactions, earning 50% of transaction fees in @G, while authorized nodes validate blocks, earning 100% of fees for independent transactions and 50% for transactions involving entry-point nodes.
This structure ensures fair rewards for both types of nodes, creating a secure, scalable, and incentivized network that transforms participation into an income opportunity. Marko Ratkovic, recently reiterated one of Graphite Network’s central visions, explaining:
“One of our key goals is to democratize access to blockchain revenue streams. With our dual-layer node system, we’ve ensured that participants at every level can earn rewards while supporting the growth and security of the network.”
Bank Integration Demo is closely tied to @G, Graphite Network’s native token, which is weaved into key operations across the network as well, including paying fees, verifying accounts, distributing rewards, and more.
By prioritizing reputation, trust, and scalability, Graphite Network offers a clear path for financial institutions to integrate blockchain responsibly — an approach that could help leaders like Donald Trump turn his vision of blockchain’s role in traditional finance into a reality.
