SMBC Nikko Securities announced Oct. 2 a cooperation agreement with blockchain developer Nethermind to build a compliance-first DeFi platform for Japanese investors using Uniswap v4's Hooks feature.
The "DeFi Gateway" will embed anti-money laundering and counter-terrorism financing controls directly into on-chain liquidity pools, allowing SMBC Nikko to manage allowlists of permissioned participants. Uniswap v4 Hooks execute custom logic at key points in a pool's lifecycle—before or after swaps, during LP position mints—enabling issuers to gate access at the protocol level.
The collaboration includes Uniswap Labs, the Nyx Foundation, and Coinbase Technologies, which operates Ethereum L2 Base. SMBC Nikko leads regulatory coordination and compliance architecture; Nethermind handles technical design, smart contract security, and Hook strategy implementation.
Development spans three tracks: a proxy vault with verifiable AI for portfolio management, the compliant Uniswap v4 pool framework, and asset management strategies covering stablecoins and real-world assets. The mid-2027 target aligns with Japan's evolving stance on tokenized securities infrastructure.
The initiative addresses institutional demand for on-chain liquidity with embedded compliance—allowing RWA issuance and DeFi participation without requiring off-chain KYC gates at the AMM level. By baking AML/CFT into Hooks rather than relying on external third parties, the framework reduces friction for domestic capital flows while maintaining regulatory rigor.
