Cryptographic Compliance
How Goldman Sachs could use Treza's Enclave attestation to prove their risk models are unmanipulated
The $10 Million Problem
In 2023, major banks paid over $3 billion in fines for risk model violations. The core issue? Regulators can't verify that banks actually used their approved algorithms.
When Goldman Sachs submits their daily Value-at-Risk (VaR) report claiming "$2.1B risk exposure calculated using approved model GS-VaR-v2.1," how can the Federal Reserve prove they didn't secretly modify the algorithm to hide losses?
Traditional answer: They can't. Until now.
Enter Cryptographic Attestation
Treza's Enclave platform provides cryptographic proof of exactly what code executed, when, and where. No more "trust us" – now it's "verify us."
How It Works: The PCR Verification Process
Platform Configuration Registers (PCRs) are cryptographic hashes that act like "digital fingerprints" for your code. Think of them as tamper-proof seals:
PCR0: Hash of the enclave environment (proves secure execution)
PCR2: Hash of your exact algorithm code (proves no modifications)
Here's the magic: These hashes are generated by hardware and cannot be faked.
Real-World Scenario: Goldman Sachs Risk Reporting
Step 1: Algorithm Certification
{
"algorithmName": "GS-VaR-Model-v2.1",
"regulatoryApproval": "Fed-2024-Risk-Model-456",
"approvedPCRs": {
"pcr0": "1ea2ee9e5d62e8621f2d0600247e96bb...",
"pcr2": "fea91a08aa929ea7e13e7cca7ca6b429..."
}
}The Federal Reserve pre-approves Goldman's risk model and records the exact PCR fingerprints.
Step 2: Daily Risk Calculation
Goldman runs their VaR calculation in a Treza Enclave:
// Goldman's automated system
async function calculateDailyVaR() {
// Verify enclave integrity before processing
const currentPCRs = await getTrezaPCRs("enc_gs_var_prod");
if (currentPCRs.pcr2 !== "fea91a08aa929ea7e13e7cca7ca6b429...") {
alert("SECURITY BREACH: Algorithm modified!");
return;
}
// Process sensitive portfolio data
const varResult = await processRiskCalculation(portfolioData);
return {
var95: "$2.1B",
attestation: currentPCRs // Cryptographic proof
};
}Step 3: Regulatory Submission with Proof
{
"reportDate": "2024-08-27",
"bankId": "GOLDMAN_SACHS",
"var95": "$2.1B",
"cryptographicProof": {
"claimedAlgorithm": "GS-VaR-v2.1",
"actualPCR2": "fea91a08aa929ea7e13e7cca7ca6b429...",
"attestationSignature": "enclave_signature...",
"executionTime": "2024-08-27T09:00:00Z"
}
}Step 4: Instant Regulatory Verification
# Federal Reserve's automated verification
APPROVED_PCR="fea91a08aa929ea7e13e7cca7ca6b429..."
ACTUAL_PCR=$(curl -s "https://api.treza.com/enclaves/enc_gs_var_prod/pcrs" | jq -r '.pcrs.pcr2')
if [ "$APPROVED_PCR" = "$ACTUAL_PCR" ]; then
echo "✅ VERIFIED: Goldman used exact approved algorithm"
else
echo "❌ VIOLATION: $10M fine triggered automatically"
fiThe Business Impact
For Financial Institutions:
Regulatory Confidence: Prove compliance with cryptographic certainty
Audit Efficiency: Reduce audit time from months to minutes
Risk Reduction: Eliminate "he said, she said" disputes with regulators
Competitive Advantage: Faster model approvals due to verifiable integrity
For Regulators:
Real-time Monitoring: Verify compliance 24/7, not just during audits
Fraud Prevention: Detect algorithm tampering instantly
Resource Efficiency: Automated verification reduces manual oversight
Market Stability: Increased confidence in reported risk metrics
Beyond Risk Models: Expanding Use Cases
Algorithmic Trading
// Prove your trading algorithm hasn't been modified
const tradingProof = {
strategy: "Goldman-Momentum-v3.2",
pcr2: "8bc4d19f7e2a5b3c9d8e1f4a6b7c2d9e...",
performance: "+12.3% YTD",
proof: "Cryptographically verified execution"
};Credit Scoring
// Prove fair lending algorithm compliance
const creditProof = {
model: "Fair-Credit-Score-v2.1",
pcr2: "2d9e1f4a6b7c8bc4d19f7e2a5b3c9d8e...",
decision: "APPROVED",
fairnessVerified: true
};Regulatory Reporting
// Automated compliance for Basel III, CCAR, Dodd-Frank
const complianceProof = {
regulation: "Basel-III-Capital-Adequacy",
calculationPCR: "5b3c9d8e1f4a6b7c2d9e8bc4d19f7e2a...",
result: "Tier 1 Capital: 12.3%",
regulatorVerified: true
};Technical Architecture: How We Built It
Our platform leverages Enclaves – hardware-secured compute environments that generate unforgeable cryptographic attestations:
Key Components:
Secure Deployment: Your algorithms run in hardware-isolated enclaves
PCR Extraction: Real-time cryptographic fingerprinting
Attestation API: RESTful endpoints for verification
Audit Trail: Immutable record of all executions
Getting Started: Implementation in 3 Steps
Step 1: Deploy Your Algorithm
POST /api/enclaves
{
"name": "Your-Risk-Model-v1.0",
"dockerImage": "your-company/risk-model:v1.0",
"instanceType": "m6i.xlarge"
}Step 2: Record Baseline PCRs
const baselinePCRs = await getTrezaPCRs("your_enclave_id");
// Store these as your "approved" fingerprintsStep 3: Verify Before Each Execution
const currentPCRs = await getTrezaPCRs("your_enclave_id");
if (currentPCRs.pcr2 === baselinePCRs.pcr2) {
// Safe to process sensitive data
const result = await processData(sensitiveData);
}ROI Calculator: What's This Worth?
Cost of Non-Compliance:
Average regulatory fine: $50M - $500M
Audit costs: $2M - $10M annually
Reputation damage: Immeasurable
Payback Scenarios:
Avoid one fine: 10x ROI immediately
Reduce audit time by 80%: $1.6M - $8M savings annually
Faster model approvals: Competitive advantage worth millions
The Future of Financial Compliance
We're entering an era where "trust but verify" becomes "don't trust, cryptographically verify."
Financial institutions that adopt verifiable computation today will have significant advantages:
Regulatory fast-track: Faster approvals for verified models
Lower capital requirements: Regulators trust verified calculations
Market confidence: Clients trust cryptographically proven results
Ready to Eliminate Regulatory Risk?
Contact our team to see how Treza's PCR attestation can transform your compliance workflow:
Demo: See real PCR verification in action
POC: 30-day proof of concept with your algorithms
Integration: Full deployment support
Schedule a demo: [email protected]
Treza provides cryptographic attestation for Enclaves, enabling verifiable secure computation for financial services, healthcare, and regulated industries. Our platform eliminates the trust gap between "what you claim" and "what actually executed."
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