Bank of New York Mellon (BNY Mellon) will be the first globally systemic important bank to employ Chainalysis compliance software.
In Brief:
- BNY Mellon will use Chainalysis’ compliance software consisting of KYT, Reactor, and Krypto.
- This makes Bank of Newyork Mellon the first Global Systemically Important Bank.
- It will utilize Chainalysis software to track, record, and make use of the data surrounding crypto assets.
Blockchain-based data platform Chainalysis has a number of customers who are regulators or law enforcement. BNY Mellon manages a diverse portfolio of assets, including bitcoin. It must keep a close eye on its customers in order to comply with the rules.
As part of the deal, BNY will use Chainalysis software to improve its risk management program by tracking, recording, and analyzing data related to crypto-assets.
Because BNY Mellon is developing a multi-asset digital custody and administration platform that will support both traditional and digital assets, it intends to integrate Chainalysis compliance software to assess broad market trends as well as granular activity in support of its compliance and due diligence practices.
The software package consists of KYT (Know Your Transaction), Reactor, and Krypto.
Chainalysis KYT enables real-time tracking of all crypto assets and will notify if a transaction is labeled as ‘high risk’.
Chainalysis Reactor is an investigation tool that provides diligence into suspicious activity. It can identify a wallet user and automatically searches through hundreds of social media forums as well as darknets.
Chainalysis Kryptos is a tool that collects and converts data into useful information for institutions. It provides a high-level overview of cryptocurrency services, such as transaction volumes, counterparties, and benchmarking.
Caroline Butler, BNY Mellon’s head of global custody, tax, and network management, emphasized the importance of trust as the bank enters the world of digital assets, saying, “Working with Chainalysis and other leading fintech providers is foundational to our role as a trusted innovator and the extension of our capabilities into products that serve the growing cryptocurrency market.”
BNY Mellon is recognized as the most trustworthy bank in the world, with an innovative and forward-thinking culture.
Chainalysis is a data custodian that can help with investigations, compliance, and market intelligence software capable of detecting and preventing illegal blockchain activity. Recently, it acquired the finance Intelligence Consultancy Firm Abaxx to use its expertise in large scale data analytics and investigative services.
