--- title: "Know Your Product (KYP): The KYC Standard for Physical Assets | Vaultik Resources" description: "Understanding how KYP applies KYC-level rigor to physical asset assessment, enabling institutional adoption across commerce, insurance, and lending." lang: en json-ld: | [ { "@context": "https://schema.org", "@type": "Organization", "name": "Vaultik", "url": "https://vaultik.com", "logo": "https://vaultik.com/og-image.png", "description": "Leading luxury authentication, valuation, and insurance platform with 99.4% accuracy using 17 specialized AI agents", "foundingDate": "2021", "slogan": "The trust infrastructure for high-value assets", "sameAs": [ "https://twitter.com/vaultik", "https://linkedin.com/company/vaultik", "https://instagram.com/vaultik", "https://facebook.com/vaultik", "https://www.youtube.com/@vaultik" ], "areaServed": "Worldwide", "serviceType": [ "Luxury Authentication", "Asset Valuation", "Insurance Services", "Blockchain Certification", "Digital Product Passports" ], "award": "2nd Best European Blockchain Startup 2024/25", "knowsAbout": [ "luxury authentication", "KYP protocol", "digital product passports", "asset tokenization" ], "mentions": [ { "@type": "NewsArticle", "headline": "Web3 Luxury Platform Vaultik Offers Game Changing Insurance Component", "url": "https://www.forbes.com/sites/stephaniehirschmiller/2023/09/27/web3-platform-offers-digital-passports-with-game-changing-insurance-component-to-protect-luxury-goods/", "datePublished": "2023-09-27", "publisher": { "@type": "Organization", "name": "Forbes" } }, { "@type": "NewsArticle", "headline": "Birmingham Assay Office Transforms The Future of Valuations", "url": "https://www.naj.co.uk/jewellery-news/birmingham-assay-office-transforms-the-future-of-valuations", "datePublished": "2025-06-25", "publisher": { "@type": "Organization", "name": "National Association of Jewellers" } }, { "@type": "NewsArticle", "headline": "HBAR uptrend remains strong amid ETF rumors and new partnerships", "url": "https://crypto.news/hbar-uptrend-remains-strong-amid-etf-rumors-and-new-partnerships/", "datePublished": "2025-01-17", "publisher": { "@type": "Organization", "name": "Crypto News" } } ] }, { "@context": "https://schema.org", "@type": "Article", "headline": "Know Your Product (KYP): The KYC Standard for Physical Assets", "description": "Understanding how KYP applies KYC-level rigor to physical asset assessment, enabling institutional adoption across commerce, insurance, and lending.", "author": { "@type": "Organization", "name": "Vaultik" }, "publisher": { "@type": "Organization", "name": "Vaultik", "logo": { "@type": "ImageObject", "url": "https://vaultik.com/og-image.png" } }, "datePublished": "October 2025", "mainEntityOfPage": "https://vaultik.com/resources/blog/know-your-product-kyp-kyc-standard" } ] --- ![Vaultik - AI-Powered Luxury Asset Authentication Platform](/lovable-uploads/15366492-fe32-45e7-8041-96572ade13c5.png) Solutions Products Technology [Categories](/categories)[Resources](/resources)[Pricing](/pricing)[API](/api) 🇺🇸 English 🇺🇸 Go to Collect CardGo to Collect Card Collect Card Business Sign in Solutions ### Industry & Service ### Solutions. 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[Technology Overview](/technology) [01 #### KYP Protocol The KYC for products — 5 AI decisions ](/technology/kyp-protocol)[02 #### Custom Training Your dataset, your agents, your API ](/technology/custom-training) [Back to Resources](/resources) Technology # Know Your Product (KYP): The KYC Standard for Physical Assets Understanding how KYP applies KYC-level rigor to physical asset assessment, enabling institutional adoption across commerce, insurance, and lending. Vaultik Research October 2025 7 min read 01 Know Your Customer (KYC) transformed financial services by establishing standardized verification protocols. Now, Know Your Product (KYP) is bringing the same rigor to physical assets—creating the institutional foundation for authentication, insurance, and asset-backed lending. ## What is KYP? KYP—Know Your Product—is an institutional-grade assessment framework that delivers five critical decisions about any physical asset: Is it authentic? What is its value? What is its condition? Does it need repairs? Who owns it? These five decisions form the basis for every downstream use case: commerce transactions, insurance underwriting, collateral valuation, and resale certification. Unlike ad-hoc authentication services, KYP provides standardized, auditable outputs that meet the requirements of regulated institutions. ## The Five KYP Decisions Decision 1 - Authenticates: Multi-point verification against known counterfeiting vectors, production records, and materials analysis. Decision 2 - Values: Real-time market valuation incorporating condition, provenance, and current demand signals. Decision 3 - Grades: Standardized condition assessment using consistent criteria across asset categories. Decision 4 - Assesses Repairs: Identification of necessary repairs, restoration history, and impact on value. Decision 5 - Verifies Ownership: Confirmation of legitimate ownership through documentation and chain-of-custody analysis. ## Why Institutions Need KYP Banks offering asset-backed loans need reliable collateral valuations. Insurers underwriting high-value items need accurate condition assessments. Marketplaces guaranteeing authenticity need defensible verification protocols. Before KYP, these institutions relied on fragmented, inconsistent processes—human appraisers with varying standards, incomplete documentation, and no audit trails. KYP delivers the standardization, accuracy, and accountability that institutional adoption requires. Every assessment produces a complete audit trail, enabling regulatory compliance and risk management. ## KYP in Practice A luxury insurer integrating KYP can underwrite new policies in minutes rather than days, with confidence in the accuracy of item valuations. A lending platform can accept physical assets as collateral, knowing that KYP assessments meet their risk management standards. A marketplace can offer instant authentication at checkout, reducing friction and building buyer confidence. In each case, KYP transforms what was once a high-friction, high-risk process into a streamlined, trustworthy experience. ### Conclusion KYP represents the missing infrastructure layer for physical asset finance. Just as KYC enabled the modern financial system to scale while managing risk, KYP enables the luxury market to reach its institutional potential. The implications extend beyond any single use case—this is foundational infrastructure for the future of high-value goods commerce. 02 Learn More [Explore our technology solutions ](/technology/kyp-protocol) 03 ### Related Articles [01 Technology #### The Future of Luxury Authentication: Multi-Agent AI vs Single-Model Systems How multi-agent AI systems are transforming the way we verify high-value physical assets, achieving 99.4% accuracy with zero hallucinations. 8 min read ](/resources/blog/future-of-luxury-authentication-multi-agent-ai)[02 Insurance #### Insurance Innovation: Underwriting Luxury with Verified Data How authentication infrastructure is enabling new insurance products for luxury goods, with instant underwriting and reduced fraud losses. 5 min read ](/resources/blog/insurance-innovation-underwriting-luxury) ## Ready to Transform ## Your Business? See how Vaultik's authentication infrastructure can work for your organization. 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