Dear Polkadot Community,
This thread will serve as a central place to share updates and progress on Referendum #1586, which was recently approved through OpenGov. We’ll be using this space to keep the community informed as we work through each milestone, share key developments, and invite your feedback along the way.
We’re excited to get started and appreciate your support and insights throughout the process.
Stay tuned!
Thanks,
Dmitry
Customer Success Manager @ Merkle Science
Hello team,
We are on track to deliver on milestone 1. The data should be ready within the next week. After that, we’ll proceed with clustering, product development, and testing, which we expect to take another 1–2 weeks before release.
Current focus areas include:
Parsing raw data
Selecting non-native assets to support
Handling ledger updates to include cross-chain transfers
Community Update – Grant Progress
We are pleased to share that we are on schedule (and slightly ahead) with the milestones committed to in our grant document.
The first milestone required us to index AssetHub data. As of 19th September, we have successfully completed this milestone. The indexer now supports both batch mode and streaming mode and currently covers events emitted by the following pallets:
Assets
Balances
ForeignAssets
Claims
Staking
Treasury
In addition, the indexer supports both Assets and ForeignAssets, with coverage extending to 81 assets in total (including 31 foreign assets). An exhaustive list has been attached to this update for reference.
Our next focus is wallet attribution and data collection to enrich this indexed data. We expect these enhancements to be integrated into our product suites within the next 2–3 weeks, and they will be made available to ecosystem members well before the completion of the next milestone date, scheduled for the end of October.
We thank the community for the continued support and look forward to sharing further progress soon.
Progress Update – Proposal #1586: “Paving the Way for Institutional Adoption and DeFi Innovation”
Dear Polkadot Community and Governance Stakeholders,
We are pleased to report that Merkle Science’s integration with the Polkadot Asset Hub is now live, and that we have begun distributing Compass and Tracker licenses to the participating ecosystem partners as outlined in our approved milestone plan.
Deployment Status and Context
Our initial rollout experienced a short delay owing to the rescheduling of the Asset Hub migration. As Parity Technologies noted:
“Hello,
We want to inform you that the Polkadot Asset Hub Migration will take place at Block No. 28,490,502, which will happen around 8 AM UTC on Tuesday, Nov 4th. You can see the referendum up for vote here. The migration should be finished in around 6 hours. You can follow the progress on the migration dashboard.
Best,
Parity Technologies”
With the migration now completed, Merkle Science has gone live with the integration and activated the compliance suite components on the Hub.
Milestone 1 – The Hub Ingestion (90 days)
Status: Completed
Deliverable: Real-time transaction ingestion for native DOT and non-native tokens on the Asset Hub.
Scope: Coverage includes 50 assets and 32 foreign assets (e.g., USDT, USDC, KSM, BNC, GLMR), with ingestion and enrichment enabling address-risk scoring and transaction-flow tracking.
Impact: This milestone establishes the ingestion pipeline that underpins all subsequent compliance and monitoring functions on the Hub.
Milestone 2 – Transaction Monitoring & Flow of Funds Capabilities (30 days)
Status: Completed and Active
Deliverable: Deployment of Compass (transaction monitoring) and Tracker (flow-of-funds analysis) across DOT and the non-native tokens listed in Milestone 1.
License Distribution: We have started distributing the 17 Compass and 17 Tracker enterprise licenses (3 users per license, 30k API calls each) as committed. These are being provided free of charge for the initial term to approved ecosystem partners including Kwickbit, Hedgepay, Harbour, Parity, Fearless, Polkagate, Subwallet, Talisman, and Nova Wallet.
Impact: Ecosystem partners can now conduct AML/CFT screening, address risk scoring, and realtime flow-of-funds analysis directly within the Polkadot environment.
Milestone 3 – Custom API Endpoint (60 days)
Status: Completed
Deliverable: Development of a unified API to power attribution data across wallets and block explorers such as Fearless, Polkagate, Subscan, Subwallet, Kwickbit, Talisman, and Nova Wallet.
Impact: This API will enhance transparency and allow pre-withdrawal counterparty screening, helping users identify malicious or sanctioned addresses before executing transactions.
Milestone 4 – Bridges and DeFi Parachain Coverage (180 days)
Status: Scheduled (next phase)
Deliverable: Expansion of ingestion and monitoring coverage to key bridges (Axelar, Wormhole, Snowbridge, Hyperbridge) and DeFi applications (Hydration, Stellaswap, Bifrost, Pendulum).
Impact: This will further strengthen Polkadot’s ecosystem security by enabling real-time cross-chain visibility and mitigating illicit fund flows between parachains and bridges.
Summary
With Milestones 1, 2 and 3 fully delivered, Merkle Science’s compliance suite is now operational on the Asset Hub. The complimentary license program is underway, ensuring that wallets, bridges, and DeFi applications can benefit from institutional-grade risk monitoring and tracing capabilities.
We appreciate the community’s patience during the Asset Hub migration period and look forward to sharing a detailed post-launch report, including usage metrics and feedback from the first cohort of licensees in the coming weeks.
Thank you,
Merkle Science Team