The Stellar Development Foundation (SDF), a non-profit organization that promotes the growth of the Stellar network, revealed on April 30 new relationships with cryptocurrency risk management business Elliptic.
The partnership sees SDF calling for Elliptic’s cryptocurrency expertise in business and financial institutions based on the Stellar blockchain .
SFD’s communications director, Lauren Torbjorsen, told the Cointelegraph that the foundation is seeking Elliptic’s expertise for businesses and financial institutions based on the Stellar blockchain.
“These services are available to online businesses after Elliptic launches the world’s first Stellar transaction monitoring system ,” she said.
What does all this mean?
Essentially, Elliptic now offers Stellar-based businesses the ability to track suspicious and fraudulent activities such as transactions, adding transparency to crime prevention and regulatory requirements.
“The integration also allows other Stellar-based assets to be quickly added to the Elliptic platform, such as stable ecosystem-supporting coins,” Torbjorsen added.
Elliptic is adding portfolio verification and XLM tracking to the Stellar network, according to an April 30 statement by SDF.
Does this move help with regulation?
Over the last few years, the blockchain industry has seen an influx of regulation, especially in the United States. As the governing bodies extend the requirements for customer verification, affiliates in the sector must also be provided with the appropriate tools to facilitate these requirements.
“An important step is for crypto businesses and financial institutions built on the Stellar network to have ready access to transaction monitoring services,” Torbjorsen said, adding:
“These tools, combined with the integrated Stellar network compliance functionality, equip our users with stronger ways to manage risk and operate in a transparent and clear way. Elliptic also works closely with law enforcement to help identify and violate criminal behavior. “
What does “exclusive partnership” mean in this case?
As the term “exclusive” can take on many meanings, Torbjorsen explained the details of the partnership in this case.
“Elliptic will be the preferred Stellar network provider. SDF is working with Elliptic to build the infrastructure and complete technical integration with the Stellar network so that new and existing blockchain businesses are already able to use Elliptic’s market-leading services for their compliance needs. “