The stablecoin Tether provider is making use of Notabene to tackle crime in cross-border transactions. Tether collaborates with Notabene to address the issue, comply with Financial Action Task Force (FATF) guidelines, and prevent money laundering.
The industry’s biggest stablecoin wants to come crashing down on illegal transfers. So the coin provider announced Tuesday that it would be integrating payment security provider Notabene’s travel rule solution. This will help Tether comply with FATF. And will decimate money laundering activities using its USDT stablecoin.
“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.”Leonardo Real, CCO of Tether
Notabene will enable Tether to test complex crypto use cases in a collaborative, low-risk environment. Furthermore, to ensure customer protection, specifically about 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. Thus, minimizing the risk of illegal money laundering affairs.
Earlier this month, Tether came under fire after a Bloomberg report alleged that the company held billions of dollars worth of Chinese debt. As the Evergrande crisis shook international markets. Additionally, Tether and Bitfinex were recently fined a combined $42.5 million by the Commodity Futures Trading Commission. Due to misrepresenting the backing behind Tether’s USDT stablecoin.
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.
By assisting the people, Tether aims to remain the leader in transparency and get information to its stakeholders.
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