Stablecoin issuer Tether has partnered with blockchain analysis firm Chainalysis to create a solution for monitoring transactions involving entities beyond direct USDT buyers and sellers.
Tether has announced that this customizable monitoring solution for secondary market activities will provide a more comprehensive understanding and oversight of the USDT market. The company believes that compliance professionals and investigators can utilize this platform as a source of intelligence to identify wallets that pose risks or may be linked to illicit and sanctioned addresses.
The platform includes various tools, such as “Sanctions Monitoring,” which compiles a list of addresses and transactions involving sanctioned entities, and “Categorizations,” which can classify USDT holders by type. Additionally, the solution features a “Largest Wallet Analysis” tool that allows for a detailed examination of significant USDT holders and their activities. There is also an “Illicit Transfers Detector” that aids in identifying transactions that may be associated with illicit categories.
Tether CEO Paolo Ardoino commented on the collaboration, stating, “Our partnership with Chainalysis is a significant step in our ongoing commitment to promoting transparency and security within the cryptocurrency industry.”
This development follows a report from the United Nations Office on Drugs and Crime (UNODC) in January, which claimed that money launderers and fraudsters in East and Southeast Asia prefer to use Tether’s USDT for their illegal activities. TRM Labs, a blockchain intelligence company, also reported that USDT was the most commonly used dollar-pegged token for illicit transactions in 2023.
Previously, Tether emphasized its collaboration with law enforcement authorities and the monitoring of USDT as reasons why the stablecoin is impractical for illicit transactions.
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