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Tether Operations Limited, the company behind the largest stablecoin by market capitalization, is trialing a new solution designed for crypto Travel Rule compliance, enforced by Financial Action Task Force (FATF), to combat money laundering and crime in crypto transactions.
In a press release, Tether said that it will be testing Notabene, an end-to-end solution designed for crypto Travel Rule compliance, in order to combat money laundering and crime in cross-border VASP-to-VASP transactions. Notabene’s protocol-agnostic solution will reportedly 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 (VASP), 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.
FATF Travel Rule requires VASPs, such as cryptocurrency exchanges, digital wallet providers and even some financial institutions including banks dealing with crypto assets, to ensure that certain customer data is disclosed and transferred between counterparties as a part of the cryptocurrency transaction.
“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.