The issuer of the largest stablecoin USDT, Tether announced a partnership on May 2 with Chainalysis, a blockchain data platform, to develop a customizable solution for monitoring secondary market activity. Tether’s stablecoin has reportedly been used on multiple occasions to finance illegal transactions.

As explained in its official statement, secondary market activity refers to transactions carried out within the broader ecosystem using Tether’s stablecoin, USDT, as well as limited entities that directly buy and sell Tether’s USDT.

This solution developed by Chainalysis allows Tether to methodically monitor transactions, offering greater understanding and oversight of the USDT market. It will also serve as a proactive source of intelligence for Tether compliance professionals and investigators, allowing them to identify wallets that may pose risks or may be associated with illicit and/or sanctioned addresses,” he explained.

According to Tether, the main components of the new solution encompass a set of monitoring and analysis tools. “These include Sanctions Monitoring, which provides a detailed list of addresses and transactions involving sanctioned entities, as well as Categorization, which allows for a complete breakdown of USDT holders by type, including exchanges and darknet markets.” Additionally, the new feature also offers a largest portfolio analysis, providing an in-depth look at significant USDT holders and their activities, and an illicit transfer detector, which identifies transactions potentially associated with illicit categories such as terrorist financing.

Paolo Ardoino, CEO of Tether commented on the new feature, stating: “Our collaboration with Chainalysis marks a fundamental step in our ongoing commitment to establishing transparency and security in the cryptocurrency industry. Tether remains steadfast in its dedication to upholding the highest standards of integrity, and this collaboration reinforces our proactive approach to protecting our ecosystem against illicit activity.”

It is worth remembering that, recently, in a strategic move that reinforces its position in the world of cryptocurrencies, Tether reached a significant milestone by successfully completing a System and Organization Controls 2 (SOC) audit, a feat that put the company at the pinnacle security compliance.


The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.


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