Tether has started using a compliance tool developed by Chainalysis to track transactions on the blockchain and monitor potential illicit activities which include suspicious transactions and to “quickly understand the risk profile of each token holder.”
According to an announcement, Tether will be using Chainalysis’ Know Your Transaction (KYT) software, which will help it look for potential illicit activities being conducted using the stablecoin.
Paolo Ardoino, Tether’s CTO, said:
“This solution allows us to ensure a secure compliance program that fosters trust with regulators, law enforcement agencies and users. This is achieved without sharing our user’s identifying information, as such data is only kept on our servers.”
The USDT stablecoin is circulating on six blockchains now, including that of Ethereum, EOS, TRON, and on the Omni protocol. The firm also issued a stablecoin tied to the euro (EURT), to the offshore Chinese yuan (CNHT), and gold (XAUT)