Chainalysis, the New York-based blockchain analysis firm announced the roll out its global compliance solution for Tether, the company behind the the largest stable by market cap Tether (USDT).
According to a press release by Chainalysis published on February 12, Tether will use Chainalysis Know Your Transaction (KYT) Suite that will enable the stablecoin’s issuers to identify high risk transactions occurring on its network.
Chainalysis said that many Chainalysis KYT customers had been using its compliance solution to track suspicious activity involving the Tether stablecoin since April. Now Tether itself will monitor the usage of its stablecoin across its platform.
The blockchain analysis company said that Chainalysis Know Your Transaction (KYT) offers token issuers a unique real-time anti-money laundering (AML) compliance solution for monitoring a token’s full lifecycle, from issuance to redemption. KYT offers both an API and a user interface to track suspicious activity, with various filtering and investigation tools.
The press release reads:
“Through integration with Chainalysis KYT via an API, token issuers can immediately begin monitoring large volumes of activity and identify high-risk transactions on an ongoing basis. The user interface also allows them to quickly understand the risk profile of each token holder with up-to-date data, filtering them by level of risk exposure to identify those that require the most immediate attention.”
Tether did not reveal the reasons for increasing the AML compliance measure for USDT two years after the launch in January 2018. USDT is the leading stablecoin on the market with a market value of $4.6 billion in market cap. Tether launched its stablecoin Tether launched on EOS, Liquid Network and Tron in 2019, with Algorand the latest addition on February 10, 2020.
As Wealth Growth Insights reported, Tether launched another physical gold-backed stablecoin Tether Gold (XAU₮) based on the Ethereum blockchain as ERC-20 and the Tron blockchain as TRC-20 tokens. In addition to these stablecoins, the blockchain platform also supports US Dollar (USD₮), euro (EUR₮) and offshore Chinese yuan (CNH₮).
Paolo Ardoino, chief technology officer of Tether, upon Chainalysis KYT integration commented:
“Working with Chainalysis has allowed us to enhance our AML processes for all transactions involving the Tether token. As one of the largest cryptocurrencies by market capitalization, we have a responsibility not just to regulators but also to the cryptocurrency ecosystem to have transparent, automated compliance solutions in place to handle any amount of volume at any given time. This solution allows us to ensure a secure compliance program that fosters trust with regulators, law enforcement agencies and users. This is achieved without sharing our user’s identifying information, as such data is only kept on our servers.”
