Paper 2025/239

DART: Decentralized, Anonymous, and Regulation-friendly Tokenization

Abstract

We introduce DART, a fully anonymous, account-based payment system designed to address a comprehensive set of real-world considerations, including regulatory compliance, while achieving constant transaction size. DART supports multiple asset types, enabling users to issue on-chain assets such as tokenized real-world assets. It ensures confidentiality and anonymity by concealing asset types, transaction amounts, balances, and the identities of both senders and receivers, while guaranteeing unlinkability between transactions. Our design provides a mechanism for asset-specific auditing. Issuers can designate asset-specific auditors for the assets they issue, with the system preserving the privacy of the auditor’s identity to achieve asset type privacy. Only the designated auditor is authorized to decrypt transactions related to their associated asset, and users efficiently prove the association between the (hidden) asset type and the (hidden) designated auditor in their transactions. DART supports non-interactive payments, allowing an online sender to submit a transaction even when the receiver is offline, while still incorporating a receiver affirmation mechanism that captures the real-world compliance consideration where the receiver must confirm (or deny) an incoming transaction. To the best of our knowledge, this is the first scheme of this kind in the permissionless setting. To accommodate all eventualities, DART also incorporates a reversibility mechanism, enabling senders to reclaim funds from pending transactions if the receiver’s affirmation is not yet provided. Finally, it offers a privacy-preserving proof of balance (per asset type) mechanism. Our system achieves full anonymity while supporting concurrent incoming and outgoing transactions, resolving a common issue that plagues many account-based anonymous systems. We further demonstrate how our system supports multi-party transactions, allowing payment to multiple receivers in one transaction efficiently. We provide a full formal model in the Universal Composition (UC) setting, as well as a UC protocol realization.