
August 2022. A counterparty already on the sanctions list. The payment goes out in USDT - the issuer doesn't block on designation, so it confirms and settles like any other transfer. Send the same value in USDC and the token itself would have refused it; on a permissionless rail you don't get to choose what your counterparty holds. Screening happens afterward: a disclosure filed, the transfer still standing. Enforcement that depends on which coin moved isn't enforcement. The fix is a permission check before settlement - run beside the rail, not by it. - identity issued by LTIN - checked by Zilliqa before a transaction settles That is what this partnership is built for.














