Elliptic, a crypto risk firm, has announced a service for traditional banks to help identify the flow of funds in and out of crypto. “Elliptic Discovery” is said to facilitate risk assessment for digital assets while covering 200+ exchanges and enabling banks to pursue new opportunities while remaining compliant.
Elliptic Discovery is said to offer a “broad range of identifiers and risk indicators” to allow banks to identify and assess the risk posed by their exposure to crypto-assets through these exchanges. This includes businesses’ corporate entities, jurisdiction, regulatory status, compliance policies as well as blockchain insights into the provenance of digital assets that they have handled.
Dr. James Smith, CEO and Co-founder of Elliptic, says that banks, fot too long, have lacked visibility into the digital asset ecosystem – something that has led to zero risk tolerance (IE avoidance).
“This has frustrated their customers, while they have remained blind to the actual risks posed by their exposure to crypto-assets. Elliptic Discovery changes that by enabling banks to shine a light on their customers’ crypto-asset activity and take a risk-based approach,” says Smith. “Not all crypto-asset exchanges are alike and Elliptic Discovery will allow banks to make this distinction and seize the opportunity to work more closely with these businesses, based on an evidence-based assessment of the risk.”