What is Kinto?

Kinto is a blockchain network designed to become the “everything app” and provide secure access to financial services by addressing prevalent issues in the blockchain space, such as scams, smart contract hacks, and user experience challenges. Built on the Arbitrum Nitro technology stack, Kinto settles on the Ethereum Mainnet and focuses on creating a safe environment for users and financial applications. Key features of Kinto include account abstraction at the chain level, smart account wallets for all users, wallet insurance, user-owned Know Your Customer (KYC) verification, Anti-Money Laundering (AML) monitoring, and KYT.

Opportunity

The blockchain space faces significant challenges in usability, security, user confidence, and compliance. Despite technological advancements, high-profile hacks, rug pulls, and security breaches have eroded trust in decentralized finance (DeFi) ecosystems. Traditional financial institutions have also hesitated to adopt blockchain technology due to counterparty risks and the need for end-to-end transaction traceability. 

Before co-founding Kinto, Ramon Recuero founded Babylon Finance, a collaborative asset management protocol known for its robust security record. When Rari, a separate protocol that Babylon was integrated with, was hacked, the interconnected nature of DeFi caused a cascading effect. This ultimately led to a bank run on Babylon, forcing the project to shut down and return user funds 

This experience highlighted a critical flaw in the blockchain space: even advanced and secure technologies are vulnerable when built on inherently unsafe infrastructure. Motivated by this realization and a desire to reshape the narrative around crypto, from scams and hacks to innovation and trust, Recuero partnered with Victor Sanchez and resolved to build a safer blockchain environment for all. 

Solution

Recuero and Sanchez evaluated various technology stacks to build their network. They found that zk-rollup solutions were still in their infancy, and other optimistic rollup solutions lacked flexibility and responsiveness. 

Sanchez said Arbitrum’s technology stack stood out because it was robust and because the team was engaged and helpful. This was exemplified by the team's willingness to help with tech-stack modifications and proactive support throughout the research and development phase. By choosing to build with Arbitrum, some key features Kinto was able to include were:

• Smart Contract Wallets: Every user on Kinto must create a multi-signature smart contract wallet by default. These wallets support up to three signers and provide an extra layer of security. They rely on biometrics, device-specific keys, and additional passkeys, ensuring strong user authentication and control.
• Integrated KYC/KYB Compliance: Kinto enforces KYC (Know Your Customer) or KYB (Know Your Business) compliance for all users. This information is handled offchain and shared only with third-party protocols on a permissioned basis. This ensures secure and compliant operations from block zero, essential for building trust and meeting regulatory standards, particularly for TradFi partnerships.
• Enhanced Node-Level Consensus Rules: Kinto introduced a unique consensus rule requiring KYC/KYB validation at the node level. This modification to the Arbitrum stack ensures that only verified users can interact with the network. Transactions must pass through a controlled entry point, where the node checks compliance with the smart contract. This dual-layer security makes the system significantly more complex to breach, aligning with Kinto’s mission of prioritizing user safety.

Kinto is tackling some of Web3’s biggest problems to create a better experience for users and enterprises. By leveraging the customizability of the Arbitrum Nitro tech stack, they were able to build a product that fits the Kinto mission and technical requirements. Kinto is exemplary of the endless possibilities of building with Arbitrum. 

Additionally, by building with Arbitrum, Kinto could utilize unique technology features only available to Arbitrum chains, including aligning closely with Ethereum mainnet and ensuring access to its liquidity and technological innovations. It was also able to use Stylus, a fully interoperable virtual machine (VM) that works seamlessly with the Ethereum Virtual Machine (EVM), enabling developers to write smart contracts in Rust and other languages.

Since becoming an Arbitrum chain, Kinto has attracted over 100,000 wallet users and processed over 1.3 million transactions. By building on a foundation that emphasizes modularity, support, and technical excellence, Kinto has showcased the transformative potential of collaborative innovation in blockchain technology.