Stablecoin issuer Tether has partnered with blockchain analytics firm Chainalysis to develop a solution for monitoring transactions involving entities beyond those buying and selling USDT directly.
In a statement, Tether said say the customizable secondary market activity monitoring solution will provide better insight and oversight of the USDT market.
The company says compliance professionals and researchers can use the platform as a source of information to identify wallets that pose risks or may be associated with illegal and sanctioned addresses.
Tether adds that the platform’s suite of tools includes ‘Sanctions Monitoring’, which lists addresses and transactions involving sanctioned entities, and ‘Categorizations’ which can break down USDT holders by type.
The solution also includes a ‘Largest Wallet Analysis’ tool, which provides an in-depth investigation into major USDT holders and their activities, and an ‘Illicit Transfers Detector’ that can help identify transactions that may be linked to illegal categories.
Says Paolo Ardoino, CEO of Tether,
“Our partnership with Chainalysis marks a critical step in our continued commitment to creating transparency and security within the cryptocurrency industry.”
The development comes after a report from the United Nations Office on Drugs and Crime (UNODC) in January that suspected money launderers and fraudsters in East and Southeast Asia prefer to use Tethers USDT for their illicit activities.
Blockchain intelligence firm TRM Labs also reported that USDT was the most used dollar-pegged token for illegal transactions in 2023.
Tether said it before the cooperation with law enforcement authorities and oversight of USDT make the stablecoin an impractical choice for illegal transactions.
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