HomeBlockchainThe stablecoin issuer Tether strengthens compliance with Chainalysis blockchain technology

The stablecoin issuer Tether strengthens compliance with Chainalysis blockchain technology

The world’s largest stablecoin issuer, Tether, has recently enhanced compliance measures through the blockchain monitoring solution by Chainalysis.

In particular, the purpose of the collaboration is to create a custom solution to monitor secondary market activities. Let’s see all the details below.

Stablecoin news: Tether partners with blockchain data platform Chainalysis

As anticipated, Tether, the leading company in the digital asset sector, has partnered with Chainalysis, a renowned blockchain data platform, to develop a customized solution.

The purpose of the latter is to allow monitoring of secondary market activities.

The secondary market includes transactions involving USDT (Tether’s stablecoin) within a broader ecosystem, beyond direct agreements between Tether and its counterparts. 

The solution developed by Chainalysis allows Tether to systematically monitor these transactions, offering a clearer view of the USDT market.

This tool allows Tether compliance professionals to identify wallets that may pose risks or be linked to addresses involved in illegal or sanctioned activities.

The solution integrates various monitoring and analysis tools. These include sanctions monitoring, which lists in detail the addresses and transactions related to sanctioned entities. 

Furthermore, they include a categorization function that divides USDT holders by type, such as exchanges and darknet markets.

Finally, it provides a detailed analysis of the main USDT portfolios, allowing for a thorough examination of the movements of heavyweight investors. 

It also provides a illicit transaction detector, essential for identifying activities potentially linked to crimes such as terrorism financing.

Some statements regarding the new collaboration 

Paolo Ardoino, CEO of Tether, commented as follows: 

“Collaborating with Chainalysis represents an important step towards greater transparency and security in the world of cryptocurrencies. Tether is committed to maintaining the highest standards of integrity and this collaboration confirms our proactive approach in protecting our ecosystem from illicit activities.”

On the other hand, Jonathan Levin, co-founder and Chief Strategy Officer of Chainalysis, said: 

“Tether’s proactivity in monitoring the secondary market of USDT, the most widely used stablecoin in the world, has the potential to transform the entire ecosystem and make it safer. The transparency of cryptocurrencies provides the opportunity to work with law enforcement to block illegal funds and discourage the use of cryptocurrencies for illicit activities such as terrorism and scams.”

Tether is committed to actively combating illicit activities in the cryptocurrency industry. The company collaborates with 124 law enforcement agencies in 43 global jurisdictions, promoting communication and information exchange to combat illegal activities.

The strict enforcement of compliance rules and prompt action against the improper use of USDT demonstrate Tether’s commitment to maintaining high standards and contributing to creating a safer environment for all participants.

Tether marks a record quarter with profits of $1 billion

Tether has recently recorded a record profit in the first quarter of 2024. According to a recent attestation report, the company reported a net profit of 1 billion dollars, with a total group net worth of 11.37 billion dollars. 

These results represent a significant leap forward compared to the 7.01 billion dollars recorded at the end of 2023. Furthermore, Tether reported the highest percentage ever of holdings in Treasury bonds.

These data highlight the strong growth of Tether Holdings Limited at the beginning of 2024. The company attributes its success to stablecoin issuers and reserve managers, who contributed 1 billion dollars to the overall result. 

Most of Tether’s profit comes from operations with US Treasury securities, while a smaller portion comes from positions in Bitcoin and Gold.

Regarding investments in Treasury bonds, Tether has increased its direct and indirect positions to over 90 billion dollars in the first quarter of 2024. 

The company has also included in the calculations the indirect exposures through reverse overnight repurchase agreements secured by Treasury securities and investments in money market funds.

This is the first time that Tether reveals its net worth, a gesture that underlines the company’s growing commitment to transparency

Furthermore, Tether has announced to keep 1 billion dollars as excess reserve, a buffer to support the stablecoin supply, bringing the total reserves to about 6.3 billion dollars.

Alessia Pannone
Alessia Pannone
Graduated in communication sciences, currently student of the master's degree course in publishing and writing. Writer of articles from an SEO perspective, with care for indexing in search engines.