Stablecoin issuer Tether announced on Tuesday that it has begun a trial partnership with Notabene to help it combat money laundering in cross-border transactions.
The partnership with the startup, which provides software to crypto exchanges to help them identify their users and track transactions, will help Tether to comply with the Financial Action Task Force’s (FATF) “travel rule,” which requires financial institutions to exchange customer information for both senders and recipients of relevant transactions.
The FATF is a Paris-based global, money-laundering watchdog. Its guidelines for crypto compliance have expanded to include exchanges and stablecoin issuers, which are known as virtual asset service providers, or “VASPs”.
Leonardo Real, Tether’s chief compliance officer, said the partnership with Notabene is meant to help Tether improve its global regulatory compliance and transparency, and to improve its products.
“As pioneers of blockchain technology and leaders in transparency, we are dedicated to not only keeping up with new rules but helping shape them,” Real said in a statement.
“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,” he said.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.