Tether, the stablecoin issuer, has partnered with blockchain analysis firm Chainalysis to create a solution for monitoring transactions involving entities beyond direct buyers and sellers of USDT. This collaboration aims to provide an improved understanding of the USDT market, offering compliance professionals and investigators a source of intelligence to identify potentially risky wallets or those associated with illicit and sanctioned addresses. The platform includes features such as “Sanctions Monitoring” to track addresses and transactions involving sanctioned entities, and “Categorizations” to classify USDT holders by type. Additionally, it offers tools like “Largest Wallet Analysis” for detailed examination of significant USDT holders and their activities, and an “Illicit Transfers Detector” to identify suspicious transactions. Paolo Ardoino, CEO of Tether, sees this collaboration as a significant step towards transparency and security within the cryptocurrency industry. This development follows a report from the United Nations Office on Drugs and Crime (UNODC) in January, which highlighted the use of USDT in illegal activities in East and Southeast Asia. TRM Labs, a blockchain intelligence company, also reported that USDT was the most commonly used dollar-pegged token for illicit transactions in 2023. Tether has previously emphasized its collaboration with law enforcement authorities and its commitment to monitoring USDT to deter illicit transactions.