KYB (Know Your Business)

KYB - "Know Your Business" - is the entity-level version of customer due diligence. Where KYC verifies an individual, KYB verifies an organization: that the company legally exists, is in good standing, is who it claims to be, and is controlled by people who are not prohibited from transacting.

KYB matters whenever the investor or counterparty is not a person but a company, fund, trust, or special purpose vehicle - which is common in RWA deals, where institutions and investment entities put in capital.

A KYB review typically confirms:

• Legal existence and standing - registration documents, incorporation details, and current good standing.
• Authority - that the individuals signing and transacting are authorized to act for the entity.
• Ownership and control - identifying the beneficial owners behind the entity, since an entity can be used to hide the real people in control.
• Screening - running the entity and its owners through sanctions screening and other watchlist checks.

KYB is a core part of an anti-money-laundering program, and it is more involved than individual KYC because corporate ownership can be layered across multiple entities and jurisdictions. For a tokenized offering onboarding institutional capital, KYB is what stands behind whitelisting an entity's wallet. The exact documentation required depends on the entity type and jurisdiction.

Source: FinCEN (fincen.gov), as of 2026.