Stablecoins are increasingly being accepted as a common method for transactions, both legitimate and otherwise. Criminals, similar to other users, prefer stablecoins like Tether’s USDT and Circle’s USDC, which maintain a 1:1 value with the U.S. dollar, over more volatile cryptocurrencies like Bitcoin.

Elliptic has launched a new Stablecoin Issuer Due Diligence tool to assist banks in monitoring and managing risks associated with stablecoins. This product allows for the inspection of wallets and tracking of assets across various blockchains. According to Elliptic, major financial institutions that engage with stablecoin issuers like Tether and Circle are already implementing this tool.

In an interview, Smith highlighted the essential nature of aligning with current and future regulations to adequately serve the growing interest in stablecoin transactions. He stated, “It’s a compelling business opportunity for banks, particularly when managing large amounts of money that require security and compliance.”

Over recent days, stablecoins have transacted over $94 billion, showcasing their pivotal role in the financial sector. The launch of Elliptic’s tool comes in response to the rapid transactions associated with these coins and the potential for misuse, underscoring the necessity for stringent oversight in this expanding market.

Furthermore, Elliptic aims to provide an easy-to-use dashboard that integrates seamlessly into existing financial systems, facilitating compliance and risk management without the need for specialized skills. This shift reflects a growing demand for solutions that balance transparency and regulatory compliance while addressing the rise in criminal activity in the crypto space.