Tether Strengthens Monitoring with Chainalysis: Bolstering Security in Crypto Transactions

Tether, the world’s largest stablecoin, recently announced that it is implementing more robust monitoring mechanisms to track the usage of its tokens in the broader crypto markets and payments, in an effort to combat illicit finance. 

In a statement issued on Thursday, Tether revealed that it has partnered with blockchain analytics company, Chainalysis, to develop new tools that enable it to identify transactions associated with sanctioned entities and analyze the activity of major token holders. 

As part of this initiative, Tether has created a new system that tracks the movement of its tokens across the blockchain. This system provides the company with real-time data on token transactions and enables it to flag any suspicious activities that may be linked to money laundering or other financial crimes. 

Furthermore, Tether’s partnership with Chainalysis has enabled it to leverage the latter’s expertise in blockchain analytics to enhance its monitoring capabilities. Chainalysis has developed a platform that uses machine learning algorithms to analyze blockchain data and detect patterns of illicit activity. 

With this platform, Tether is better equipped to detect and prevent fraudulent transactions and protect its users from potential risks. 

Overall, Tether’s decision to ramp up its monitoring efforts is a positive step towards ensuring the integrity and security of its platform, and it demonstrates its commitment to combating financial crime in the crypto industry.

According to a report by Reuters last month, Venezuela’s state-owned oil company PDVSA has planned to increase its usage of Tether, a stablecoin cryptocurrency. This decision has been made in the midst of US-imposed oil sanctions, which have restricted the country’s access to traditional banking systems. 

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