The blockchain analysis company has launched new software designed to help financial institutions better understand the risks exposure with existing cryptocurrency activity and opportunities for investment. This will help financial professionals to connect the dots between traditional financial transactions and cryptocurrency markets.
Going by the name of Chainalysis Kryptos, the tool was built on the reference data standard already trusted by government agencies across the world and more than 115 leading cryptocurrency businesses. Kryptos aims at provide transparency into cryptocurrency markets so that players within the ecosystem are able to improve compliance, risk exposure and better offer banking services to cryptocurrency businesses, and build foundations for expansion into the asset class.
Kryptos is the result of Chainanalysis’ survey conducted in September which found that nearly half respondents – 350 finance professionals – believe Bitcoin will be the investment class with the highest growth rate over the next 12 months, ahead of equities, fixed income, and the house pricing index, but many of them expressed concerns about the ability to control illicit activity facilitated by cryptocurrency and to comply with regulations.
The service provides a view into Know Your Customer (KYC) practices and blockchain transaction data from exchanges’ business operations, country of operation, cryptocurrency assets supported, blockchain transaction activity, and counterparties. Users can also quantify their risk exposure across wire transfers or credit card transactions. Kryptos is now available in Beta and will become generally available in early 2020.
Michael Gronager, Co-Founder and CEO, Chainalysis, commented: “We’ve heard grass roots excitement for cryptocurrency from financial institutions for years, and now we’re focused on breaking down the barriers to entry. Finally, financial institutions can access the transparency they need to fulfill their compliance responsibilities, meet customer demand, and seize the market opportunity they already believe in.”
Michelle Sabins, SVP Managing Principal, Silvergate, said: “Chainalysis Kryptos is a powerful tool for institutions to use to evaluate the risk profile of global industry participants and to measure their counterparty risk. Access to this information in a standardized way will help institutions in this space make informed business decisions regarding who they do business with, while leveraging the power of blockchain analysis.”
Jonathan Levin, Co-Founder and Chief Strategy Officer, Chainalysis, said: “Our data puts us in a position to help financial institutions enter the cryptocurrency market safely and responsibly. Not only does Kryptos help them mitigate risk and access new high-growth markets, but it will also help cryptocurrency businesses build trust with their banks. All players in the cryptocurrency ecosystem stand to benefit from increased transparency.”
