On Tuesday, November 12, 2019, blockchain analysis firm, Chainalysis announced the launch of new software that aims to aid financial institutions in better understanding crypto-related risks. This software is called Chainalysis Kryptos.
As previously reported by Bitcoin Exchange Guide, a poll done by the blockchain analysis firm concluded that half of its respondents expect Bitcoin to take over equities, fixed income, and the housing price index. At the same time, said financial institutions expressed concern over the lack of regulations and the possibility of being exposed to risk.
Kryptos was designed with the aforementioned concerns in mind and therefore ensures that users have access to transparency into the crypto markets so that a better comprehension of risk exposure can be attained. Furthermore, the software is expected to increase confidence in banks when deciding to offer services to crypto businesses.
According to the Co-Founder and CEO of Chainalysis, Michael Gronager, the goal is to eliminate any barrier of entry, adding that,
“Financial institutions can access the transparency they need to fulfill their compliance responsibilities, meet customer demand, and seize the market opportunity they already believe in.”
The SVP Managing Principal of Silvergate, Michelle Sabins describes Kryptos as a “powerful tool for institutions to use to evaluate the risk profile […] to measure their counterparty risk.”
Some of the types of information that users will have access to include an exchange’s business operations, country of operation, transaction activity, risk across wire transfers, etc.
As per Co-Founder and Chief Strategy Officer of Chainalysis, Jonathan Levin,
“Not only does Kryptos help [financial institutions] mitigate risk and access new high growth markets but it will also help crypto businesses build trust with their banks.”
Currently available in Beta, Kryptos will be available on a broader space in early 2020. All updates will be made by Chainalysis employees on all aspects of digital assets.