Stablecoin issuer Tether has joined forces with Chainalysis, a prominent blockchain data platform, to introduce a tailored solution aimed at bolstering oversight of secondary market activity.
This collaborative effort addresses transactions conducted within the wider ecosystem utilizing USDT (Tether’s stablecoin) beyond the direct entities involved in purchasing and selling USDT from Tether. The solution, crafted by Chainalysis, equips Tether with systematic monitoring capabilities, facilitating a deeper understanding and supervision of the USDT market. It will serve as a proactive tool for Tether’s compliance experts and investigators, enabling them to pinpoint wallets that may present risks or could be linked to illicit or sanctioned addresses.
Key features of this solution include a comprehensive array of monitoring and analysis tools. These encompass Sanctions Monitoring, which furnishes a detailed rundown of addresses and transactions involving sanctioned entities, as well as Categorization, allowing for a meticulous breakdown of USDT holders by category, such as exchanges and darknet markets.
Additionally, it offers a Largest Wallet Analysis, providing an exhaustive examination of significant USDT holders and their activities, and an Illicit Transfers Detector crucial for identifying transactions potentially associated with illicit activities like terrorist financing.
Paolo Ardoino, CEO of Tether, emphasized:
Our collaboration with Chainalysis marks a pivotal step in our ongoing commitment to establishing transparency and security within the cryptocurrency industry. 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.
Jonathan Levin, Co-Founder and Chief Strategy Officer of Chainalysis, remarked:
Tether’s proactive commitment to monitoring the secondary market for USDT – the world’s most popular cryptocurrency – has the potential to transform the entire ecosystem and make it a safer place to transact.
Tether actively combats illicit activities across the industry, collaborating with 124 law enforcement agencies across 43 global jurisdictions to facilitate efficient communication and data exchange in addressing illicit activities. Its rigorous enforcement of compliance measures and swift action against misuse of USDT underscore its commitment to responsible cryptocurrency practices, setting a benchmark for safety in the industry and ensuring a secure environment for all participants involved.
