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London-based blockchain forensics provider Elliptic has launched the first system to monitor transactions in XRP, the currency of the Ripple payment network. From today, businesses and financial institutions can systematically screen XRP transactions for links to criminal activity, ensuring compliance with ever-stricter AML (anti money laundering) regulations.
Already, Elliptic claims to have identified $400 million of illicit transactions. However, this constitutes only 0.2 per cent of total XRP activity, demonstrating that the vast majority of transactions are legitimate, the startup said.
In September, Elliptic raised $23 million in a funding round led by Softbank subsidiary SBI. It primarily tracks currencies like bitcoin for banks, investment funds and crypto exchanges like Coinbase. With the addition of XRP, it now supports over 85% of all crypto-assets.
Elliptic cofounder Tom Robinson told Decrypt that the startup’s tools would form a cornerstone for crypto compliance policies worldwide, and that XRP was gaining traction in the APAC region among financial institutions and banks. “With cryptocurrency regulatory frameworks advancing quickly, our AML solutions will help accelerate adoption in this region and globally,” he said.
Spending on blockchain solutions is predicted to reach $522.7 million in 2019—an increase of 81% compared to 2018, according to anaylsts, IDC.
Elliptic rival Chainalysis raised $30 million earlier this year—but unlike Elliptic, it focuses on the law enforcement market.
The new XRP system is currently in beta, with full support due to roll out in early December.