Blockchain analytics platform Chainalysis and the world’s biggest stablecoin issuer, Tether, have announced a partnership to prevent criminal activities and keep an eye on the secondary market.
Tether, the issuer of the dollar-pegged cryptocurrency “USDT,” announced the debut of additional monitoring and analysis tools alongside Chainalysis. The instruments will be able to spot wallets that might be dangerous or linked to banned or illegal addresses.
The blog post was written by Jonathan Levin, co-founder and chief strategy officer of Chainalysis. Levin stated that Tether’s proactive commitment to monitoring the secondary market for USDT, the most popular cryptocurrency in the world, could change the entire ecosystem and make it safer to transact.
Tether Adopts Chainalysis Ecosystem Monitoring Solution to Strengthen Compliance Measures. In order to provide a flexible tool for tracking secondary market activity, Tether teamed up with blockchain data company @chainalysis.
Beyond the small number of companies who purchase and sell USDT directly from Tether, “secondary market activity” encompasses all transactions involving USDT throughout the larger ecosystem, according to Tether.
Tether will be able to “methodically monitor transactions” with the help of the new tools developed by Chainalysis, providing the USDT market with strict supervision. Compliance experts and detectives at Tether will utilize the tools to find wallets that might be harmful or linked to banned or illegal addresses, according to the company.
Tether achieved a major milestone earlier this week when it announced a record net profit of $4.52 billion for the first quarter of 2024. Financial gains on Bitcoin and gold reaching $3.52 billion and an extra $1 billion from operational earnings were the main contributors to the large profit.
Credit rating agency S&P Global Inc. of the United States said in December that it was beginning to evaluate Tether’s capacity to sustain its dollar peg and has assigned it a “constrained” rating of 4. On a scale from 1 to 5, where 5 is considered very poor, is the risk assessment. The lack of information supplied has resulted in Tether receiving a bad score.
Stablecoins are a kind of cryptocurrency that often have their value tied to a tangible asset or conventional currency. Since its inception in 2014, Tether has been the subject of intense investigation; it now ranks as the most widely circulated stablecoin. The S&P has observed that its price has been very consistent over the last few years, and especially so during the last year.
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