Tether has partnered with Chainalysis, a blockchain data platform, in order to monitor transactions in the secondary market and combat illicit activity. Tether, which is responsible for issuing the stablecoin USDT, will be utilizing new monitoring and analysis tools developed by Chainalysis. These tools will enable the identification of wallets that may be associated with illicit or sanctioned addresses. The collaboration between Tether and Chainalysis is seen as a proactive step towards creating a safer ecosystem for cryptocurrency transactions. Tether’s recent record net profit of $4.52 billion in the first quarter of 2024 was primarily attributed to financial gains on Bitcoin and gold. The credit ratings firm S&P Global Inc. has expressed concerns about Tether’s ability to maintain its peg to the U.S. dollar but has given it a ‘constrained’ rating of 4. Stablecoins like Tether are cryptocurrencies that are typically pegged to a fiat currency or commodity. Tether, issued in 2014, is the longest-standing stablecoin with the largest volume in circulation. Its price has remained stable in recent years, according to S&P.
