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Tether, the company behind the largest stablecoin by market capitalization, USDT, has announced that it will be using Notabene to ensure compliance with anti-money laundering laws. The blockchain will be used to develop an end-to-end solution that will bring compliance with crypto Travel Rules.
Tether has announced that it will start testing the applications of Notabene to curb money laundering and criminal activities facilitated by cross-border transactions by VASP platforms.
Test Crypto Use Cases
The report also stated that Notabene would enable Tether to test the use cases of crypto in a collaborative but low-risk environment. Through Notabene, Tether will assess solutions provided by Notabene to understand how it can communicate client information to VASPs safely and securely.
The CCO of Tether, Leonardo Real, commented on this development saying,” As pioneers of blockchain technology and leaders in transparency, we are dedicated to not only keeping up with new rules but helping shape them. Because the Travel Rule traditionally applies to financial institutions, we see this as an opportune moment to foster cooperation across traditional and digital channels to create better services for customers globally.”
Virtual asset service providers have now been classified under the same category as regulated financial institutions. Therefore, these providers are required to comply with the “travel rule” that requires them to exchange customer information with each other for a specific timeframe.
Through the travel rule, countries and VASPs can curb the use of crypto assets for money laundering and terrorism financing. It will also ensure that clients on the platform can abide by the set sanctions.
Protect Clients through Transparency
Real further stated that Tether was proud to be the stablecoin leader in creating a positive impact and helping to protect clients. The report further noted that Tether had established a strong presence in the global crypto sector.
The CEO of Notabene, Pelle Braendgaard, also noted that the platform was eager to help Tether work with VASPs to bring compliance. This would bring a safe and regulated framework to the cryptocurrency space. Through Notabene’s solution, Tether will better manage counterparty risk and bring the best experience to its clients.
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