Chainalysis And Tether Team Up To Combat Illicit Activity

Tether (USDT) has partnered with blockchain data platform Chainalysis to oversee activity in secondary markets and combat unlawful behavior. The collaboration involves the development of new monitoring and analysis tools capable of identifying high-risk wallets or those associated with illicit or sanctioned addresses.

Monitoring Transactions

According to Tether, secondary market activity refers to transactions made using USDT within the broader ecosystem beyond direct purchases through Tether. These tools, created by Chainalysis, enable Tether to systematically monitor transactions, providing oversight of the USDT market. They empower Tether via their compliance professionals and investigators to pinpoint risky wallets or those linked to illicit or sanctioned addresses.

Tether recently announced a record net profit of $4.52 billion in the first quarter of 2024, mainly attributed to gains via Bitcoin and gold, totaling $3.52 billion, along with $1 billion through operating profits. However, the company has faced scrutiny, with S&P Global Inc. assessing its ability to maintain its peg to the U.S. dollar and assigning it a constrained rating of 4, citing a lack of disclosed information.

Tether Soldiers On

Stablecoins are cryptocurrencies designed to maintain a stable value by being pegged to a fiat currency or commodity, offering a reliable means of digital exchange and store of value. There are various stablecoins in the market today, including but not limited to USDT, DAI, USDC, and more.

Stablecoins like Tether are cryptocurrencies whose value is typically tied to a fiat currency or commodity. Tether, established in 2014, has the longest tenure and largest circulation volume among stablecoins, though it has faced ongoing scrutiny. Despite this, its price has remained relatively stable, especially in the past year.