Stablecoin issuer Tether has partnered with blockchain forensics firm Chainalysis to develop a tool for monitoring secondary market activity. This partnership aims to enhance oversight of the USDT market, providing compliance investigators with a proactive source of intelligence.

The tool developed by Chainalysis includes features such as sanctions monitoring, categorizing USDT holders by type, and an illicit transfers detector. This tool will help identify wallets that may pose risks or be associated with illicit activities.

Tether CEO Paolo Ardoino stated, “Our collaboration with Chainalysis marks a pivotal step in our commitment to establishing transparency and security within the cryptocurrency industry.”

The collaboration comes amid concerns raised by U.S. senators regarding the potential misuse of Tether’s stablecoin by countries like Russia, Iran, and North Korea to circumvent Western sanctions. Allegations surfaced that USDT enabled Russian entities to bypass sanctions and procure components for drones and other equipment abroad.

Tether recently added 8,888 Bitcoins to its reserves, holding more than 75,000 Bitcoins. This move further solidifies Tether’s position in the cryptocurrency market.

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