Aztec Labs, the developer behind a privacy-focused Ethereum Layer 2 zero-knowledge rollup, has acquired Obsidion, the firm responsible for the open-source identity verification tool ZKPassport. The deal brings the entire Obsidion team—including co-founders Michael Elliot and Theo Madzou—into Aztec Labs, where they will continue to develop ZKPassport and contribute to other products. Financial terms of the acquisition were not disclosed.
ZKPassport uses zero-knowledge proofs to let users verify personal attributes such as age, nationality, or “proof of humanity” by scanning their passport’s NFC chip with a smartphone, without revealing the underlying document or identity. The technology generates a cryptographic signature on the device, confirming only the required attribute. Aztec Labs previously used ZKPassport for identity verification during its community token sale, verifying 17,000 participants’ nationalities for compliance.
Aztec Labs aims to enhance its privacy-preserving Layer 2 network, which provides programmable privacy for smart contracts. The acquisition will allow Aztec to integrate native identity verification into its ecosystem, addressing regulatory demands for Know Your Customer (KYC) checks while maintaining user anonymity. “The Obsidion team has built something rare: a privacy product that meets real-world verification requirements without exposing user data,” said Aztec Labs CEO Joe Andrews. “Proving attributes without revealing personal data is what verification infrastructure should look like everywhere, especially with the growing desire from governments to implement age verification standards online.”
The move comes as Aztec Labs continues to roll out its Ignition Chain, unveiled in mid-November as the “first fully decentralized L2 on Ethereum,” with approximately 136 nodes operating as a “private world computer.” The project supports applications such as StealthNote, a messaging tool built on Aztec’s zero-knowledge programming language, Noir. Aztec has raised about $60 million in ETH through a token sale and previously secured $125 million in venture capital from a16z, Paradigm, and Ethereum co-founder Vitalik Buterin.
The acquisition signals broader trends of consolidation in the crypto industry and a growing convergence between privacy technology and real-world identity requirements. Aztec Labs pledged to keep the ZKPassport protocol and its iOS mobile app open-source, ensuring the tool remains accessible to the wider developer community.
