Do I need to be KYC'd to be an LP?

Do I need to be KYC'd to be an LP?

Yes. Participating as an LP in an institutional RWA lending product involves identity verification (KYC) and, in most cases, checks that you qualify as an eligible investor under the applicable rules. This isn't optional friction; it's a requirement of operating a regulated, institutional-grade credit product rather than a permissionless one.

The reason is straightforward: the underlying assets are real-world credit instruments, and the product itself typically falls under securities and financial regulations that require the issuer to know who its investors are, confirm they meet eligibility standards (such as accredited or qualified investor thresholds in certain jurisdictions), and comply with anti-money-laundering rules. A product that let anyone deposit anonymously couldn't meet those obligations, which are precisely what make it a legitimate institutional instrument rather than an unregulated pool.

Practically, KYC is enforced at the point of access. In tokenized structures, this is often implemented through permissioned token standards like ERC-3643, where only verified, eligible addresses can hold the LP token, and a transfer to an unverified address simply won't execute. The identity and eligibility layer is bound to the token itself rather than relying on off-chain enforcement, which is what allows a compliant, permissioned product to exist on public infrastructure.

The verification is typically a one-time onboarding process (identity documents, eligibility confirmation) rather than something repeated for every transaction. Once you're verified and your address is whitelisted, you interact with the product normally.

Related: ERC-3643.