Paper 2025/239

DART: Decentralized, Anonymous, and Regulation-friendly Tokenization

Abstract

We introduce DART, a fully anonymous, account-based payment system that addresses real-world requirements, including regulatory compliance, while achieving constant transaction size. DART supports multiple asset types, allowing users to issue on-chain assets such as tokenized real-world assets. It guarantees confidentiality and anonymity by concealing asset types, amounts, balances, and the identities of both senders and receivers, while ensuring unlinkability between transactions. The design enables asset-specific auditing: issuers designate auditors for the assets they issue, with the system preserving auditor identity to achieve asset type privacy. Only the designated auditor can decrypt transactions linked to their asset, and users prove the association between the hidden asset type and hidden auditor in their transactions. DART supports non-interactive payments, allowing an online sender to submit a transaction when the receiver is offline, while supporting a receiver affirmation step that reflects compliance requirements, ensuring receivers confirm or deny incoming transfers. To our knowledge, this is the first scheme of this kind in the permissionless setting. To handle eventualities, DART incorporates a reversibility mechanism, enabling senders to reclaim funds from pending transactions if affirmation is absent. It further provides a privacy-preserving proof of balance (per asset type). Our system achieves full anonymity while supporting concurrent incoming and outgoing transfers, overcoming a limitation of many account-based anonymous systems. We also support multi-party transactions, allowing efficient payment to multiple receivers in one transfer. Finally, we present a formal model in the Universal Composition (UC) framework, a UC protocol realization, and performance evaluation demonstrating practicality