The Stellar Development Foundation launches a partnership with Elliptic, adding transparency capabilities to Stellar-based businesses.
The Stellar Development Foundation, or SDF, a non-profit organization tasked with fostering the growth of the Stellar network. Launched a new tie-up with crypto risk management operation, Elliptic, on April 30.
The partnership sees SDF call for Elliptic crypto risk expertise for businesses and financial institutions based on the Stellar blockchain, SFD communications director Lauren Thorbjornsen told Cointelegraph in an April 30 email.
“The service is live and available to businesses on the network today when Elliptic launches the world’s first Stellar network transaction monitoring system,” he said.
What does all that mean?
Essentially, Elliptic now brings Stellar-based businesses the ability to track suspicious and fraudulent activities, such as transactions, adding transparency to criminal prevention and regulatory requirements.
“This integration also enables rapid addition to the Elliptic platform of other Stellar-based assets such as stablecoins that support the wider ecosystem,” added Thorbjornsen.
Elliptic added wallet checks and potential XLM tracking to the Stellar camp, an April 30 statement from the SDF detailed.
This step helps Regulation??
Over the past few years, the blockchain industry has seen an influx of regulation, especially in the US. As a regulatory body expands customer verification requirements. Relevant businesses in this sector should also equip themselves with appropriate tools to facilitate these requirements.
Stellar sees collaboration as a way to stay on top of regulations that are sure to continue in the industry in the coming days. “This is an important step for crypto financial businesses and institutions built on the Stellar network to have ready access to transaction monitoring services,” said Thorbjornsen, adding:
“These tools, combined with the compliance functionality inherent in the Stellar network. Mequip our users with more powerful tools to manage risk and operate with transparency and accountability. Elliptic also works closely with law enforcement agencies to help identify and disrupt criminal behavior. “
What does ‘exclusive partnership’ mean in this example?
Since the term ‘exclusive’ can have multiple meanings, Thorbjornsen clarifies what the details of the partnership are in this example. “Elliptic will be the Stellar network provider of choice,” he said, adding,
“SDF worked with Elliptic to build the infrastructure and complete the technical integration with the Stellar network. So new and existing businesses on Stellar can now use the market-leading Elliptic service for their compliance needs.”
Last month, SDF also launched a donation solution that matches US dollar donations with an XLM equivalent amount.