Tether [USDT] has had a year filled with both accomplishments and controversy in 2021. Tether’s market capitalization surpassed $70 billion in October, propelling it into the world’s top five cryptocurrencies. And yet, as a result of the Evergrande financial problem and the CFTC’s inspection, the Hong Kong-based stablecoin was forced to deal with FUD over its holdings — once again.
Tether is now in the headlines, however, as a result of a new platform, it will be testing. Tether Operations Limited stated on 26 October that it will conduct a test of the Notabene platform to guarantee compliance with the new crypto Travel Rule.
The Financial Action Task Force’s [FATF] Travel Rule establishes that Virtual Asset Service Providers, or VASPs, must conduct and record KYC procedures for digital transfers over a specific value. This is to fight money laundering, terrorist funding, and to ensure compliance with sanctions.
Tether said in a statement, “Tether will begin testing Notabene’s protocol-independent solution to tackle money laundering and criminal activity in cross-border VASP-to-VASP transactions. Notabene will allow Tether to conduct collaborative, low-risk testing of complicated crypto application cases.”
Additionally, Tether said that it will evaluate how customer identifying information may be provided “securely” to other VASPs. Leonardo Real, Tether’s Chief Commercial Officer, said “Because the Travel Rule has historically applied to financial institutions, we believe now is an ideal time to develop collaboration across conventional and digital channels in order to improve worldwide client service.”
Naturally, this has significant ramifications for Defi, where USDT is critical. Additionally, Tether will integrate Notabene’s end-to-end solution if the testing is successful. Pelle Braendgaard, CEO of Notabene, said the following about USDT: “Tether’s stable coin has deservedly established itself as a critical component of the global cryptocurrency sector.”
There are voices all around. October has been a difficult month for Tether, as the business attempts to recover from the $41 million settlement payment to the Commodity Futures Trading Commission [CFTC]. Tether was charged by the Commodity Futures Trading Commission of misrepresenting the USD backing for its USDT coins. Tether has had its hands full addressing the claims leveled against it by media outlets.
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