Aztec Labs Acquires ZKPassport Team to Expand Privacy-Focused Identity Verification

MakeCryippreferred on

Aztec Labs has acquired Obsidion, the company behind privacy-focused identity protocol ZKPassport, as demand for secure online verification tools continues to grow across crypto and internet platforms. The companies did not disclose financial details of the acquisition. Obsidion co-founders Michael Elliot and Theo Madzou will join Aztec Labs alongside the broader ZKPassport team.

The acquisition gives Aztec Labs direct access to one of the more widely discussed privacy-preserving identity tools in the crypto sector. ZKPassport allows users to verify information such as age, nationality, and sanctions compliance without uploading sensitive personal data to centralized servers. Aztec said the ZKPassport protocol and its iOS app will remain open source after the acquisition.

Why the deal matters

Governments and regulators are increasing pressure on platforms to implement stricter identity and age verification systems. At the same time, concerns around personal data exposure continue to rise following several large-scale data breaches globally.

Traditional identity verification systems typically require users to upload passports or government IDs to centralized databases. Those systems create large stores of personal information that can become targets for cyberattacks.

ZKPassport uses zero-knowledge proof technology to avoid storing user data externally. Instead of uploading documents, users generate cryptographic proofs directly from their device using the NFC chips embedded in modern passports and IDs. The protocol currently supports government-issued IDs from more than 130 countries. The growing focus on privacy-focused infrastructure has also made the acquisition part of broader web3 fundraising updates tied to compliance and digital identity technologies.

ZKPassport already used in live deployments

Unlike many experimental privacy tools, ZKPassport has already been used in real-world verification events. During the Aztec Network token sale, more than 17,000 users reportedly used ZKPassport to verify nationality and sanctions compliance requirements. The protocol was also used during Devconnect-related events across Latin America for ticket verification and regional access programs.

Key details from the acquisition:

• Aztec Labs acquired Obsidion, the company behind ZKPassport
• Financial terms of the deal were not disclosed
• ZKPassport supports IDs from 130+ countries
• Over 17,000 users used the protocol during Aztec’s token sale
• The protocol and mobile app will remain open source

Funding and investor backing

Aztec Labs is one of the larger-funded privacy infrastructure companies in crypto. The company has reportedly raised around $125 million from investors including Andreessen Horowitz (a16z), Paradigm, and Ethereum co-founder Vitalik Buterin.

Separately, the Aztec Foundation raised approximately $60 million worth of ETH through an AZTEC token sale last year. The funding has mainly supported development of the Aztec Network, a privacy-focused Ethereum Layer 2 platform. Aztec launched its Ignition Chain in late 2025 as part of its effort to build decentralized privacy infrastructure for blockchain applications.

Growing market for privacy-based verification

The acquisition reflects a broader shift in the market as companies look for ways to meet compliance requirements without collecting large amounts of personal data. Privacy-preserving identity systems are becoming more important as regulators push for stronger online verification standards, especially around financial services, sanctions compliance, and age restrictions.

Several crypto firms have also moved toward acquisitions and consolidation in recent months as competition for infrastructure and compliance tools increases. For Aztec Labs, adding ZKPassport expands its reach beyond blockchain privacy applications and into digital identity infrastructure, a sector expected to grow as online verification becomes more common across both crypto and mainstream platforms.