- Tether, the stablecoin issuer, is collaborating with Chainalysis, a blockchain research company, to create a solution for tracking transactions involving parties other than those who purchase and sell USDT directly.
- Tether claims in a statement that the adaptable system for keeping an eye on secondary market activity would provide better insight and control over the USDT market.
The platform, according to the company, can be used as an intelligence tool by compliance specialists and investigators to find wallets that present a risk or could be connected to prohibited or illegal addresses.
Tether notes that two more capabilities in the platform’s toolkit are “Categorizations,” which allows users to filter USDT holders based on their category, and “Sanctions Monitoring,” which keeps track of addresses and transactions involving businesses that are prohibited.
Additionally, the solution comes with an unlawful Transfers Detector that can assist in locating transactions that can be connected to unlawful categories and a Largest Wallet Analysis tool that provides a detailed analysis of notable USDT holders and their activity.
The development happens in response to a January report from the United Nations Office on Drugs and Crime (UNODC) claiming that fraudsters and money launderers in East and Southeast Asia favor using Tether’s USDT for their illicit operations.
According to TRM Labs, a blockchain intelligence business, USDT was the most widely used dollar-pegged token for nefarious activities in 2023.
Tether has previously stated that the stablecoin is not a viable option for illegal activities due to its cooperation with law enforcement and the monitoring of USDT.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
