Elliptic launches stablecoin due‑diligence tool for banks
Elliptic launched a due-diligence app for banks and compliance teams as stablecoins enter mainstream payments. The tool tracks wallets across chains, maps counterparties and risk trends, and is already live at several major banks.
It provides a configurable dashboard, custom clustering, and historical insights to track how risk evolves. Elliptic presents it as a practical workflow tool rather than a complex investigative console.
Founder James Smith said several large banks working with Tether and Circle are already using the app, though he did not disclose names. He framed the business case plainly: billions in stablecoins move daily (CoinGecko data shows roughly $94B moved in stablecoins over the past 24 hours), and banks want a share of that flow – within the rules.
Founder James Smith said several large banks working with Tether and Circle are already using the app, though he did not disclose names. He framed the business case plainly: billions in stablecoins move daily (CoinGecko data shows roughly $94B moved in stablecoins over the past 24 hours), and banks want a share of that flow – within the rules.
Elliptic notes that illicit actors often rotate in and out of stablecoins or shift to non‑freezable assets in early laundering stages to avoid issuer freezes. The app supports cross‑chain tracking to follow funds as they hop between networks, including flows on Tron (popular in China/SEA) and Ethereum, the two largest USDT destinations per Tether’s disclosures.
Most issuers can freeze or blacklist wallets via smart‑contract functions, revoke approvals, and burn or seize tokens. A recent example: the T3 Financial Crime Unit (Tron, Tether, TRM Labs) said it froze $250M+ in criminal assets within its first year.
Smith emphasized the product applies to all issuers, not only the biggest players, and that activity volumes naturally skew higher on USDT than USDC given circulation size.
As stablecoins move into everyday payments, the key signal will be whether more banks publicly adopt the tool. Metrics to watch include reduced false positives, faster client onboarding, and clearer assessments of issuer and distributor risk.
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