Tether, the issuer of the USDT stablecoin, announced that it has partnered with Chainalysis, a blockchain analytics company, to develop a new USDT transaction monitoring solution.
The solution, which will be customizable to Tether’s needs, will allow the company to better track and monitor USDT activity outside of its own platform.
According to Tether, the platform will be useful for compliance officers and law enforcement, giving them access to actionable intelligence on potentially risky wallets associated with illegal activity or sanctions.
Key features of the new solution inсlude:
- Sanctions monitoring: identifying addresses and transactions associated with sanctioned entities.
- Categorization: categorization of USDT holders by type.
- Large Wallet Analysis: detailed examination of transactions and activity of large USDT holders.
- Illegal Transfers Detector: identifying transactions that may involve illegal activity.
“The collaboration with Chainalysis is an important step in our commitment to transparency and security in the cryptocurrency industry,” said Tether CEO Paolo Ardoino.
The collaboration comes amid growing concerns about the use of USDT in illegal activities. In January, the United Nations Office on Drugs and Crime (UNODC) reported that criminals in East and Southeast Asia are favoring USDT for money laundering and other illicit transactions. Blockchain analytics firm TRM Labs also predicts that USDT will become the most common stablecoin used for illicit transactions in 2023.
Tether has previously stated that its cooperation with law enforcement and active monitoring of USDT make this steiblcoin an impractical choice for criminals.
