Altman-Backed Startup Rolls Out Eyeball-Scanning Tech Across US: A Biometric Revolution or Regulatory Minefield?

In May 2025, Sam Altman’s startup Tools for Humanity—formerly known as Worldcoin—began rolling out its iris-scanning technology across the U.S., marking a bold step into the biometric verification space. The venture, which has already enrolled 26 million users globally, aims to create a decentralized identity system using blockchain and advanced optics. But as the company expands into one of the world’s most privacy-conscious markets, investors are left wondering: Is this a revolutionary tool for combating AI-driven fraud, or a risky play in an increasingly regulated tech landscape?

The Tech and Its Ambitions
At the core of Tools for Humanity’s offering is the Orb, a spherical device that scans users’ irises and faces to generate a unique “IrisCode” stored on the blockchain. The system, paired with its portable Orb Mini counterpart, is designed to verify human identity and block AI-generated deepfakes or bot networks. Users gain access to the service via physical kiosks in retail locations like Razer stores, with verified participants receiving 16 units of the WLD cryptocurrency—a token that can now be converted into fiat via a new Visa debit card.

The U.S. rollout includes partnerships with major platforms: Minecraft, Reddit, Shopify, and Discord now accept World ID as a sign-in method. Perhaps most striking is the Visa tie-up, which grants verified users access to a debit card—marking a rare alliance between a crypto-native project and a financial giant.

Market Opportunity vs. Regulatory Headwinds
The startup’s ambition is clear: to become the default identity verification layer for the metaverse, social platforms, and even basic income systems in an AI-driven economy. With 12 million users already verified globally, the potential market is vast. The global biometric systems market is projected to hit $54.8 billion by 2028, per MarketsandMarkets, and Tools for Humanity is positioning itself at the forefront of this trend.

Yet the path is littered with obstacles. The company faces scrutiny over its handling of biometric data—a category of information subject to stringent regulations like the GDPR in Europe and the CCPA in California. Tools for Humanity claims its data is split across multiple institutions using advanced encryption, making it “decentralized and impossible to reverse-engineer.” However, skeptics point to the Panama Papers leak as evidence that no system is entirely breach-proof.

Regulatory hurdles are already biting. The service remains banned in New York State, and geopolitical tensions over data sovereignty loom large. Meanwhile, the WLD token’s value has been volatile, trading below its 2023 debut price before recent U.S. rollout announcements.

Financials and Fundraising
Despite these challenges, Tools for Humanity has raised a substantial $240 million in venture capital as of March 2025, with backers including Andreessen Horowitz and Khosla Ventures. Its $1 billion valuation by 2021 suggests investor confidence in its long-term vision. However, the company’s 2023 goal of reaching one billion users now looks distant, with just 12 million verified globally.

The rollout’s financial viability hinges on monetization: the Visa debit card, partnerships with platforms like Tinder for age verification, and potential fees for enterprise identity services. Yet converting a decentralized ID system into a profitable business model remains unproven.

The Bottom Line: A High-Risk, High-Reward Play
Tools for Humanity’s U.S. launch represents both an opportunity and a gamble. On the one hand, the company is addressing a pressing need in an era of AI-generated fraud and identity theft. Its partnerships with Visa and Match Group’s Tinder signal credibility, while the blockchain-based ID system offers a novel solution to digital trust.

On the other hand, the regulatory environment is unpredictable. Even with $240 million in funding, the startup must navigate a minefield of data privacy laws and geopolitical tensions. The WLD token’s volatility also underscores the risk of overhyping a crypto asset without a clear revenue stream.

For investors, the key metrics to watch are user adoption rates in the U.S.—especially in the six flagship cities—and regulatory outcomes. If Tools for Humanity can scale its user base while satisfying privacy concerns, its valuation could skyrocket. But a misstep on data security or a regulatory ban could sink the project entirely.

In conclusion, Tools for Humanity’s iris-scanning tech is a fascinating experiment in biometric identity verification. With backing from Sam Altman and partnerships with financial heavyweights like Visa, it has the potential to redefine digital trust. Yet its success hinges on balancing innovation with compliance in an increasingly regulated world—a tightrope walk that could make or break this billion-dollar startup.