Leading stablecoin tests new solution to combat money laundering and crime in cross-border VASP-to-VASP transactions
Tether Operations Limited (“Tether”), the company operating the blockchain-enabled platform tether.to, that powers the largest stablecoin by market capitalization, announced today that it will be utilizing Notabene, an end-to-end solution designed for crypto Travel Rule compliance. Tether will begin testing Notabene’s protocol-agnostic solution in order to combat money laundering and crime in cross-border VASP-to-VASP transactions.
Notabene will enable Tether to test complex crypto use cases in a collaborative, low-risk environment. In order to ensure customer protection, specifically as it pertains to transactions made by Virtual Asset Service Providers (VASPs), Tether will use Notabene’s solution to see how it can send other VASPs the required identifying information in respect of its customers in a secure manner.
Global money-laundering watchdog the Financial Action Task Force (FATF) has issued guidelines holding VASPS to the same standards as regulated financial institutions. The “Travel Rule” recommends that VASPs dealing with virtual assets should transmit specific customer data between counterparties for transactions over a certain threshold. The guidelines describe the FATF’s recommendations in key areas. These practices are intended to assist countries and service providers in combating money laundering, terrorist financing, and abiding by sanctions measures.
“It’s important that we work with other large VASPS to build this industry from the ground up,” said Leonardo Real, CCO of Tether. “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 in order to create better services for customers globally. We are proud to lead the charge on behalf of all stablecoins in order to make a positive change towards protecting our clients.”
“Tether’s stablecoin has rightfully cemented its role as a core part of the global crypto industry,” said Pelle Braendgaard, CEO of Notabene. “Notabene is excited to help Tether bring out FATF crypto Travel Rule compliance across its global network, leading to a safer and more regulatory compliant crypto world.”
By bringing a trusted data layer to blockchain transactions, Notabene’s design will assist Tether in managing counterparty risk and deliver a best-in-class transfer experience to its customers.
Upon successful testing, Tether’s hope to integrate Notabene’s solution. Tether aims to remain the leader in transparency and in getting information to its stakeholders. To learn more about Tether, please visit, https://tether.to/.
