Tether, the stablecoin issuer, has partnered with blockchain analysis firm Chainalysis to create a solution that monitors transactions involving entities other than direct buyers and sellers of USDT. This customizable monitoring platform aims to provide a better understanding and oversight of the USDT market. Compliance professionals and investigators can use the platform to gather intelligence and identify wallets that pose risks or may be associated with illicit and sanctioned addresses. The suite of tools offered by the platform includes “Sanctions Monitoring,” which tracks addresses and transactions involving sanctioned entities, and “Categorizations,” which breaks down USDT holders by type. The solution also features a “Largest Wallet Analysis” tool for a detailed examination of significant USDT holders and their activities, as well as an “Illicit Transfers Detector” for identifying potentially illicit transactions. Paolo Ardoino, CEO of Tether, sees this collaboration as a significant step towards transparency and security in the cryptocurrency industry. This development follows a report from the UNODC in January, which claimed that money launderers and fraudsters in East and Southeast Asia prefer to use USDT for their illegal activities. 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 stated that its collaboration with law enforcement and the monitoring of USDT make it an impractical choice for illicit transactions.