Tether Enters Transaction Surveillance Partnership with Chainalysis as Regulatory Pressure Mounts
Tether, the issuer of the largest stablecoin USDT, has partnered with blockchain surveillance company Chainalysis to monitor transactions involving its tokens on secondary markets. The surveillance system will include international sanctions compliance and illicit transfer detection to identify potential risks associated with activities like terrorist financing. This move comes amid increasing global regulatory pressure on Tether due to allegations that USDT is being used to circumvent international sanctions and facilitate illicit finance. USDT, with over $110 billion of tokens in circulation, is backed primarily by U.S. Treasury bonds managed by Wall Street trading house Cantor Fitzgerald. Tether recently reported first quarter earnings of $4.52 billion.
