Blockchain-Assisted Trust and Transparency in Cross-Border Digital Asset Management System

Abstract

Blockchain-Assisted Trust and Transparency in Cross-Border Digital Asset Management Systems aims to apply blockchain technology in enhancing digital asset management by increasing integrity, traceability, and compliance across borders. The study explores how the decentralized and immutable nature of blockchains can address persistent issues in global asset transactions. Existing cross-border digital asset management systems encounter issues of trust, lack of interoperability, regulatory discrepancies, and inadequate transparency. These limitations hinder the immediacy of verification, increase susceptibility to fraud, and impede compliance across multiple jurisdictions. To fill these gaps, this study formulates a Blockchain-Enabled Federated Identity Management framework (B-EFIM). The methodology is characterized by the iterative design, development, and evaluation of a blockchain-based system integrating smart contracts adjustable to specific jurisdictions with a permissioned distributed ledger, empowering clear, secure, and verifiable transactions. The proposed approach enables real-time supervision of asset movements, validates automated compliance, and establishes trust through verifiable records that are accessible to all stakeholders, including regulators, financial institutions, and asset custodians. It enables seamless alignment with regulatory requirements while enhancing operational effectiveness. The B-EFIM framework significantly enhances the practitioner's ability to monitor asset tracing and compliance issues while deepening stakeholder confidence in cross-border transfers of digital assets, proving it to be an effective and scalable solution for international financial infrastructures.