- Coinbase (NASDAQ:COIN) has launched its ‘Know Your Transaction’ product line for legal trading.
- Investors, businesses, and users can manage risks in transactions.
- In related news, Coinbase launched the beta version of its NFT marketplace.
Coinbase has announced the launch of a new asset to control and secure crypto transactions. The release came in a blog written by the company’s CEO and co-founder, Brian Armstrong.
Coinbase shared the news on its official Twitter (NYSE:TWTR) account. The company revealed that it has already developed a whole suite of products that will cater to the necessary needs of crypto companies, businesses, and financial firms.
Coinbase released its Coinbase Know Your Transaction (KYT) as part of the product suite. It also improved its previous internal data analytics tool, Coinbase Analytics, which has now been dubbed “Coinbase Tracer.”
According to the American exchange, KYT is a transaction screening tool that financial institutions and cryptocurrency firms may use to proactively manage risk using its patented risk score algorithm.
As stated by Coinbase, the use of its KYT API will allow businesses to automate real-time transaction monitoring for millions of transactions by generating risk scores for addresses.
Businesses using this asset can get warnings to allow proactive risk management if risk profiles change. Furthermore, the system easily integrates rule engines and unique risk insights into current third-party case management solutions. Finally, it screens transactions at scale for anti-terror funding and other anti-money laundering flags.
After facing challenges of crypto compliance, this prompted Coinbase to develop a Tracer.
As the exchange explained, Coinbase Tracer can help link organization activities to real-world entities and visualize the flow of funds using public data.
The tracer will also help them reduce fraud, demystify counterparty risk, and help flag anti-money laundering risks with its sophisticated risk scores and alerts.
Additionally, Tracer also empowers organizations to identify action points for intervention with seamless integrations with other case management tools and transaction monitoring systems.
Coinbase said in the extensive blog post on their webpage:
We’ve also updated our user interface to be more user-friendly, visually engaging, and in line with our other Coinbase products.
This announcement came a few days after Coinbase launched the beta version of its non-fungible token (NFT) marketplace, which has a huge collection of NFTs on the Ethereum blockchain.