Chainalysis Provides Anti-Money Laundering Compliance Solution for Tether
LONDON, Feb. 12, 2020 /PRNewswire/ -- Chainalysis, the blockchain analysis company, today announced the global roll out of its compliance solution for Tether, the blockchain-enabled platform that powers the largest stablecoin by market capitalization. Chainalysis Know Your Transaction (KYT) for Token Issuers is a unique real-time anti-money laundering (AML) compliance solution for monitoring a token’s full lifecycle, from issuance to redemption.
While Chainalysis KYT customers have been able to monitor their platforms for suspicious activity involving the Tether stablecoin since April, now the Tether platform can monitor the stablecoin’s usage across its blockchain, enabling the real-time tracking of suspicious transactions.
“Stablecoins like Tether, which peg their value to other assets, were developed to appeal to mainstream audiences who are wary of the price volatility associated with many traditional cryptocurrencies,” said Jonathan Levin, Co-Founder and Chief Strategy Officer, Chainalysis. “By putting proper AML transaction monitoring in place, Tether is demonstrating its commitment to transparency and regulatory compliance, further building trust among its growing user base.”
“Working with Chainalysis has allowed us to enhance our AML processes for all transactions involving the Tether token,” said Paolo Ardoino, Chief Technology Officer, Tether. “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.”
Tether’s market capitalization increased from $1.8 billion on January 1 2019 to about $4.6 billion in February 2020. Tether went live on Ethereum in January 2018 and is also available on Omni. Tether launched on EOS, Liquid Network and Tron in 2019, with Algorand the latest addition in February 2020. Tether is at the forefront of technological innovation and new product development in the cryptocurrency ecosystem. Tether launched Tether Gold (XAU₮) in January 2020, a digital asset providing exposure to physical gold. In addition, the Tether group of companies already supports US Dollar (USD₮), euro (EUR₮) and offshore Chinese yuan (CNH₮).
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.
Chainalysis is the blockchain analysis company providing data and analysis to government agencies, exchanges, and financial institutions across 40 countries. Our investigation and compliance tools, education, and support create transparency across blockchains so our customers can engage confidently with cryptocurrency. Backed by Accel, Benchmark, and other leading names in venture capital, Chainalysis builds trust in blockchains. For more information, visit www.chainalysis.com.
Tether is the preeminent stablecoin with the biggest market capitalization, surpassing that of all rival offerings combined. Created in October 2014, Tether has grown to become the most traded cryptocurrency. Tether is disrupting the legacy financial system by offering a more modern approach to money. By introducing fiat currency-digital cash to the bitcoin, Ethereum, EOS, Liquid Network, Omni, Tron and Algorand blockchains, Tether makes a significant contribution to a more connected ecosystem. Tether combines digital currency benefits, such as instant global transactions, with traditional currency benefits, such as price stability. With a commitment to transparency and compliance, Tether is a secure, fast and low-cost way to transact with money.
SOURCE Chainalysis Inc.