Executive Summary

As the digital economy accelerates and assets worldwide migrate onto blockchain infrastructure, stablecoins—along with their supporting digital identity and wallet systems—have become essential pillars for mainstream finance and innovation. When Hong Kong’s Stablecoin Ordinance took effect in August 2025, it brought strong regulatory impetus to the local and regional digital finance sectors. In an environment of tighter oversight, growing demands for financial security, and heightened user privacy expectations, a reliable digital identity and KYC framework has become the foundation for compliant stablecoin operations.

Rather than issuing its own tokens, Matrix addresses this foundation by embedding on-chain identity binding into a finger-vein biometric hardware wallet. Using 880 nm near-infrared imaging to capture subdermal vein patterns, the system achieves a false-accept rate below 0.0001% and a false-reject rate under 0.01%, with over 99% recognition accuracy across temperatures from 0 °C to 40 °C. Registration requires just three scans of four to five seconds each.

On privacy and compliance, Matrix builds on concepts from WorldCoin such as local hashing and zero-knowledge proofs, but optimizes them for Hong Kong’s regulatory landscape and large-scale deployment. All vein images, templates, and keys remain locked inside the device’s trusted execution environment—never uploaded to the cloud or recorded on-chain. Users can invoke a one-click “Unverify” function at any time to permanently erase their local template, complying with GDPR and Hong Kong PDPO “right to be forgotten” requirements. Regulators receive only anonymized zero-knowledge proofs confirming completed KYC and liveness checks, enabling real-time or periodic audits without access to raw biometric data. Through sandbox trials, bank pilots, whitepaper publication, and cross-border demonstrations, Matrix’s vein wallet will anchor Hong Kong’s role as a leading hub for compliant, fiat-pegged stablecoins.

To lower adoption barriers, Matrix has introduced a “stake-for-hardware” incentive model using its native MAN token. Instead of paying upfront, users lock a specified amount of MAN for a defined period to receive a biometric wallet device. Competitive analysis shows Matrix’s solution maintains false accept rates below 0.01%, false reject rates under 0.1%, and strong resistance to AI-driven spoofing—outperforming costly, centrally sharded systems like WorldCoin’s Orb and face- or voice-based solutions vulnerable to deepfakes.

Beyond Hong Kong, both the IMF and OECD have identified a growing need in DeFi and regulated digital asset markets for balance between privacy compliance and ongoing identity assurance. This new approach must move past the old trade-off of “secure but inconvenient,” prevent data silos and regulatory gaps, and build a more trusted, inclusive digital finance ecosystem. By delivering an integrated, hardware-anchored identity and signing platform, Matrix’s finger-vein wallet offers exchanges, regulators, and users a secure, efficient compliance foundation—strengthening Hong Kong’s position as a global digital asset center.