Stablecoins issuer Tether had added a compliance tool from blockchain analysis firm Chainalysis to track suspicious transactions in “real-time.”
Chainalysis’ Know Your Transaction (KYT) software has been integrated with Tether to monitor transactions and “quickly understand the risk profile of each token holder,” according to an announcement Wednesday. The tool will look for potentially criminal or otherwise illicit activity.
“This solution allows us to ensure a secure compliance program that fosters trust with regulators, law enforcement agencies and users,” said Paolo Ardoino, CTO of Tether. “This is achieved without sharing our user’s identifying information, as such data is only kept on our servers.”
Tether’s stablecoin USDT is currently live on six blockchains – Ethereum, EOS, TRON, Omni, Liquid Network and Algorand. The issuer also offers stablecoins tied to gold (XAUT), euro (EURT) and offshore Chinese yuan (CNHT).
Tether and its sister firm Bitfinex have been accused of manipulating the bitcoin market and concealing illicit proceeds. In response to those allegations, Tether recently said: “It is reckless – and utterly false – to assert that Tether tokens are issued in order to enable illicit activity.”