Chainalysis launches compliance solution for Tether stablecoin

Chainalysis, the blockchain analysis company, has commences the global roll out of its compliance solution for Tether, the blockchain-enabled platform that powers the largest stablecoin by market capitalization. Chainalysis Know Your Transaction (KYT) for Token Issuers is a unique 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," said Jonathan Levin, Co-Founder and Chief Strategy Officer, Chainalysis. "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."

"Working with Chainalysis has allowed us to enhance our AML processes for all transactions involving the Tether token," said Paolo Ardoino, Chief Technology Officer, Tether. "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."