Provider of crypto-asset risk management solutions for financial institutions, Elliptic announced the release of Elliptic Discovery.
Besides, in creating Elliptic Discovery, Elliptic reportedly collaborated with financial institutions, the company’s investors and current customers.
What benefits can banks expect?
Elliptic claims the solution provides banks compliance teams with insights they need to identify flows of funds into and out of crypto-assets. As well as assess the risk that they pose. Accordingly, there’s reportedly access to detailed profiles of over two hundred global crypto exchanges. Thus, enabling them to manage risk, pursue new opportunities, and meet stringent regulatory requirements.
Additionally, the Elliptic Discover says it provides banks with the chance to understand their overall exposure to crypto-assets. Majorly through their customers’ activities. Also, the solution claims to help banks identify customers whose crypto-asset activities bring increased money laundering or sanctions risks. And help banks assess the risk profiles and KYC procedures of different crypto-asset exchanges. Thus, enabling them to work more closely with the exchanges.
Furthermore, Elliptic Discovery brings the expectation of increased transparency between traditional financial institutions and crypto businesses, which benefits the two parties. There’s also an added expectation that the solution will boost the crypto market by equipping them with insights needed to manage their risk based on their criteria.
CEO and Co-founder of Elliptic, Dr. James commented on the development. He mentioned that for long, banks’ lack of visibility into the crypto-asset ecosystem led to zero-tolerance for the emerging asset class. Thus, he said this frustrated bank customers as they remained blind to the actual risks posed by their exposure to crypto-assets. Notably, he said the solution changes this by enabling banks to shine a light on their customers’ crypto-asset activity. Also helping them take a risk-based approach.
“Not all crypto-asset exchanges are alike. Elliptic Discovery allows banks to make this distinction. The solution also helps banks seize the opportunity to work more closely with these businesses, based on an evidence-based assessment of the risk,” Dr. James said.