Top stablecoin issuer Tether will be working with Chainalysis in an effort to boost compliance and monitoring of any potential illicit activity.
Over the years, Tether has been hit with claims of shoddy operations, and the company has worked to alleviate those concerns. This week, Tether posted an update on its reserves, which anchor its dollar-based stablecoin USDT.
Chainalysis is one of the most respected firms in the blockchain analysis and monitoring space. As most blockchains utilize public ledgers, these creates an opportunity to monitor and track the movement of value. As the volumes are enormous, specialized firms have emerged to enable firms, as well as enforcement agencies, to keep an eye out for any digital asset illicit activity.
The specific solution crafted by Chainalysis for Tether is said to monitor value movement and offer a better understanding and oversight of the USDT market.
Tether states this information will also serve as a proactive source of intelligence for compliance professionals and investigators. This includes sanctioned entities and other bad actors attempting to take advantage of the streamlined value transfer of crypto markets.
Jonathan Levin, Co-Founder and Chief Strategy Officer at Chainalysis, said crypto is transparent and harnessing that transparency is a way to deter frauds, scams and other criminal activity.
Tether CEO Paolo Ardoino said the partnership with Chainalysis is a pivotal step in security for the crypto ecosystem.
“Tether remains steadfast in its dedication to upholding the highest standards of integrity, and this collaboration reinforces our proactive approach to safeguarding our ecosystem against illicit activities.”
Tether reports that it works to combat illicit activities across the industry and states that it has collaborated with 124 law enforcement agencies across 43 global jurisdictions.
Creating a compliant and confident stablecoin environment is key to allowing stablecoins to emerge as the new payment rails.
