Predicate sanctions enforcement enables M0 to power stablecoins now reaching a market cap of $319 million.

M0 needed sanctions enforcement applied to every stablecoin launched on its platform, without each stablecoin building it themselves. Predicate provides that control system: it holds the freeze manager role on M0-powered stablecoins, monitors sanctions lists across jurisdictions, and freezes designated addresses across every chain M0 operates on.

The results:

• $319M of M0 stablecoins sanctions compliant

• 100% coverage for OFAC sanctions

• <2 minutes lag between OFAC sanctions update and automated freezes

Background information: What is M0?

M0 provides the infrastructure for applications, fintechs, payment platforms, and financial institutions to launch their own stablecoins. Rather than building from scratch, an institution designs a stablecoin around its specific needs and issues it on M0's existing onchain network, which handles multi-chain compatibility and liquidity. The stack is proven at scale, powering live stablecoin and tokenized finance products for partners around the world.

The compliance challenge: Real-time sanctions enforcement at scale for M0-powered stablecoins

Increased use of blockchains by state-backed and criminal actors, along with major blockchain-based exploits, makes the need for real-time sanctions enforcement necessary. Illicit flows reached a record of $154 billion in 2025, with stablecoins accounting for 84% of that volume. This threat accelerated in 2026: North Korean hackers stole more than $1 billion, including $387 million from the Bitget exchange. For stablecoin businesses, like M0, it is crucial to ensure real-time sanctions enforcement across global jurisdictions to block rogue nations, terrorist cells, drug cartels, human traffickers, and other malicious actors.

"Issuance is the easy part. Meeting the obligations that come with it, like freezing sanctioned addresses and responding to lawful orders, belongs in the infrastructure, not on every builder’s roadmap." – Luca Prosperi, Co-Founder & CEO, M0

The solution: An enterprise sanctions control platform for M0-powered stablecoins

The Predicate platform enables secure secondary market controls of regulated assets, in which compliance policies are enforced through automatic and manual asset freezes. The Predicate team worked with M0 to leverage this platform and develop a secure and scalable system to ensure that sanctioned actors are blocked from using or receiving M0-powered stablecoins. Here’s how M0’s compliance system with Predicate works:

1. M0 grants Predicate a freeze manager role on M0-powered stablecoins.

2. Predicate monitors the United States Office of Foreign Assets Control (OFAC) sanctions list and immediately freezes any existing and new digital currency addresses as soon as they have been identified.

3. M0 customers leverage the Predicate dashboard to securely execute manual freezes to service lawful order and document the reasoning.

4. Customers with more complex compliance requirements are able to add additional sanctions jurisdictions and data sources for automated freezing and incident responses.

5. Predicate provides an immutable audit trail of all freezes and unfreezes to service law enforcement and regulators.

Crucially, the full enforcement system runs on tamper-resistant key management to prevent unauthorized human access.

The results: industry-leading stablecoin sanctions compliance

By integrating Predicate, M0 can grow their operations with peace of mind. Predicate’s end-to-end compliance platform is built to scale seamlessly, allowing M0 to continue launching new stablecoins across geographic regions without any net-new engineering or effect on uptime and latency.

Crucially, M0 can guarantee 100% multi-jurisdictions sanctions coverage and industry-leading freeze-times. With Predicate, M0-powered stablecoins freeze newly sanctioned addresses in under 2 minutes — a process that usually takes asset issuers hours if not days to execute. Given the strict liability of sanctions, M0-powered stablecoins are never out of sync with OFAC.

Lastly, M0 is able to provide a seamless compliance UX for its customers through Predicate’s platform. While M0 defined a baseline policy to adhere to OFAC sanctions, M0 customers can add additional compliance settings if needed and service lawful orders. All of these policies can be executed without new engineering work, and enforced across multiple blockchain networks in real time. For example, a stablecoin customer may wish to enable incident response policies to respond to major exploits. Predicate saves M0 from having to tackle any custom compliance requirements individually.

Predicate puts secondary market compliance at the foundation of M0. Together, this combination of ready-to-use infrastructure from M0 and built-in compliance from Predicate sets the stage for the proliferation of stablecoins across regulated markets.

“Strong compliance controls are essential for any stablecoin. Thanks to Predicate, any company that launches a stablecoin on M0 can implement the right compliance policy for their asset, and adjust it as needs change.” – Luca Prosperi, Co-Founder & CEO, M0