Tether (USDT)
$1.01 (0.49 %) View coin
News
12 February 2020

Tether adds anti-money laundering compliance tool from Chainalysis

According to a press release today, Chainalysis announced the global roll out of its anti-money laundering (AML) compliance solution for Tether (USDT). The solution, Know Your Transaction (KYT) for Token Issuers is a real-time AML compliance solution for tracking a token's full lifecycle. While Chainalysis KYT customers have been able to monitor their platforms for suspicious activity involving USDT since April, now the Tether platform can monitor USDT usage across its blockchains, enabling the real-time tracking of suspicious transactions.

Why it matters: - The solution could be an important step towards cleaning up USDT’s reputation as a “grey market” stablecoin. Historically, USDT has been seen as less trustworthy than its regulated competitors including USDC and PAX. - The announcement also suggest increasing Tether is looking to fend off competition from its more regulated competitors whose value proposition has been to offer a more professional and regulatory compliant stablecoin.

On January 7, Tether conducted a cross-chain swap of $15 million USDT reserves from Ethereum to Liquid, a federated Bitcoin sidechain for exchange settlement developed by Blockstream. Although support for USDT on Liquid was first announced in July 2019, the decision to finally convert some USDT over...

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