Bahamian Capital Union Bank has engaged blockchain data platform Chainalysis to help offer cryptocurrency services. The action comes shortly after the island state passed crypto-friendly legislation to attract investors.
Chainalysis will assist the bank with risk management and regulatory compliance as it begins to offer crypto trading and custody services to its customers.
Chainalysis to provide KYT and risk management services
Chainalysis will provide the Capital Union Bank with Know Your Transaction (KYT) and Reactor features. The blockchain data platform’s KYT component is capable of monitoring real-time digital asset transactions which eventually detects high-risk activity patterns. While the Reactor function will assist the bank in investigating suspicious activities in the deal.
Chainalysis is well-known for providing solutions over the date and other services to different businesses in more than 70 countries. While Capital Union Bank is preparing to offer bitcoin services to its clients. CUB’s CEO, Patrick Zbinden, believes that the bank can bridge the gap between potential investors and the digital asset markets.
According to Zbinden, partnering with Chainalysis would allow them to provide new crypto-related services more securely. While Jonathan Levin, CSO of Chainalysis, mentioned that this partnership with Capital Union Bank will boost cryptocurrency adoption.
$1.3 billion stolen by Hackers from Defi 2022
Hackers stealing cryptocurrency through Defi platforms have increased, according to a report recently released by Chainalysis. The report mentioned that hackers stole over $3.2 billion worth of digital assets in 2021. Meanwhile, digital theft of $1.3 billion was reported in the first three months of 2022 across crypto exchanges, platforms, and other services.
According to Chainalysis, DeFi protocols were responsible for 72% of the stolen cryptocurrency in 2021. Meanwhile, the percentage has risen to 97% in 2022. However, data shows that only 30% of theft occurred in 2020. Seven of the ten Defi hacks have resulted in the theft of over $1.6 billion worth of crypto assets.