What Is a Travel Address?
Like an IBAN, a Travel Address is a string of characters, just like a crypto address, for example: ta6MNBj2u4art71gN99C6xniYrNfDUF26QgZHdXwd6zzYsvk1S6M5A15K2REHRULnZHnJs88
In Travel Rule transfers, the Travel Address replaces the usual wallet address since it contains the following:
The VASP that controls the receiving address,
The VASP’s URL to receive Travel Rule data.
It also offers enhanced privacy for the user, the immediate identification of wallets hosted by VASPs, the opportunity to do sanction checks - for the beneficiary - before sending, and the ability to reject a transfer before it happens, avoiding cumbersome coin quarantining.
Lastly, because the Travel Address only provides the beneficiary VASP’s name and no personal information, it is one of the safest identifiers currently available and UNIQUE to the Travel Rule Protocol (TRP).
How Does a Travel Address Work?
Firstly, a Travel Address is provided by the beneficiary. It is easy to obtain, the beneficiary (B) logs onto their account, and just like they would view their wallet address, the Travel Address is visible too.
The Travel Address is sent from B to the originator (O), who then shares this information with the VASP they want to withdraw the received assets from. The VASP now has the opportunity to:
Double-check with the originator where the virtual assets are being sent, as this information is present in the Travel Address that O provided,
Check if the beneficiary VASP (VASP B) has been KYVed before any further information is shared,
Check if the VASP B has been sanctioned.
Based on these outcomes the VASP can now decide how to proceed with the transaction.
Find out more about the Travel Address in these blogs: