Elliptic unveils due diligence tool for stablecoins to track cross-chain activity

The blockchain analytics specialist Elliptic has released a due diligence toolset for ￰0￱ to Elliptic, the product can scrutinize wallets and track assets moving from one blockchain to ￰1￱ to James Smith, the founder of Elliptic, Companies in mainstream finance can use the tracking tools and ￰2￱ tools can be used by stablecoin issuers like Tether and Circle, which are the two biggest in an industry worth almost $300 billion, as well as their major suppliers and ￰3￱ addition, the product is relevant to all stablecoin issuers operating today, not just the major ￰4￱ revealed that several big banks that work with the issuers are already using Elliptic’s Stablecoin Issuer Due Diligence ￰5￱ market data, the stablecoin industry has become the playground for criminals as they try to escape ￰6￱ industry is also growing so fast that the crime tool is essential.

On-chain data shows that $94 billion worth of stablecoins have changed hands in the past 24 ￰7￱ uniqueness of the Elliptic crime-tracking tool Most stablecoin issuers have been fighting crime through their ability to freeze or blacklist specific wallet addresses, preventing them from transferring or redeeming the stablecoins they ￰8￱ to Smith, this functionality is typically built into the smart contracts that also allow issuers to revoke previously granted approvals and burn or seize tokens. “Elliptic’s investigators have often observed illicit actors rapidly converting their assets to non-freezable stablecoins or to native assets during the early money-laundering stages to avoid disruption,” Smith ￰9￱ that play host to nefarious activity are mostly in Southeast Asia, where USDT on Tron is very popular.

Tether’s website shows that the Tron blockchain is home to more than $78 billion of USDT, the largest destination after Ethereum’s $85 ￰10￱ is not different for Tron, Tether, and the blockchain analytics company TRM ￰11￱ started the T3 Financial Crime Unit less than a year ￰12￱ month, the unit said it had frozen more than $250 million in illegal assets. However, Smith says that Elliptic’s Issuer Due Diligence app is different from other blockchain analytics tools that are ￰13￱ tools take a lot of research, and are often hard for people who aren’t tech-savvy to ￰14￱ explained, “It offers a configurable dashboard rather than an investigative tool, provides custom clustering and dynamic historical insights to show how risk changes over time, and is designed to integrate seamlessly into financial institutions’ workflows with flexibility and privacy.” The US dollar-denominated stablecoin market is up today Today, the US dollar-denominated stablecoin market, which makes up around 99% of the global stablecoin market, has grown to $225 ￰15￱ says this accounts for roughly 7% of the broader $3 trillion crypto ￰16￱ transaction volumes.