Tether blockchain integrates AML compliance solution from Chainalysis

Chainalysis, the blockchain analysis company, today announced the integration of its compliance solution for Tether, the largest stablecoin blockchain platform by market capitalization. Chainalysis Know Your Transaction (KYT) for token issuers is a real-time anti-money laundering (AML) compliance solution for monitoring a token’s full lifecycle, from issuance to redemption.

While Chainalysis KYT customers have been able to monitor their platforms for suspicious activity involving the Tether stablecoin since April, now the Tether platform can monitor the stablecoin’s usage across its blockchain, enabling the real-time tracking of suspicious transactions.

“Stablecoins like Tether, which peg their value to other assets, were developed to appeal to mainstream audiences who are wary of the price volatility associated with many traditional cryptocurrencies. By putting proper AML transaction monitoring in place, Tether is demonstrating its commitment to transparency and regulatory compliance, further building trust among its growing user base.”
– Jonathan Levin, Co-Founder and Chief Strategy Officer, Chainalysis

Tether’s market capitalization increased from $1.8 billion on January 1, 2019, to about $4.6 billion in February 2020. Tether went live on Ethereum in January 2018 and is also available on Omni. Tether launched on EOS, Liquid Network and Tron in 2019, with Algorand the latest addition in February 2020. Tether is at the forefront of technological innovation and new product development in the cryptocurrency ecosystem. Tether launched Tether Gold (XAU₮) in January 2020, a digital asset providing exposure to physical gold. In addition, the Tether group of companies already supports US Dollar (USD₮), euro (EUR₮) and offshore Chinese yuan (CNH₮).

“Working with Chainalysis has allowed us to enhance our AML processes for all transactions involving the Tether token. As one of the largest cryptocurrencies by market capitalization, we have a responsibility not just to regulators but also to the cryptocurrency ecosystem to have transparent, automated compliance solutions in place to handle any amount of volume at any given time. This solution allows us to ensure a secure compliance program that fosters trust with regulators, law enforcement agencies and users. This is achieved without sharing our user’s identifying information, as such data is only kept on our servers.”
– Paolo Ardoino, Chief Technology Officer, Tether

Through integration with Chainalysis KYT via an API, token issuers can immediately begin monitoring large volumes of activity and identify high-risk transactions on an ongoing basis. The user interface allows them to quickly understand the risk profile of each token holder with current data, filtering them by the level of risk exposure to identify those that require the most immediate attention.

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