The bank has completed a pilot project with crypto asset risk management company Elliptic to report suspicious crypto activity
Blockchain analytics and compliance solutions company Elliptic announced yesterday that it has partnered with Santander to help the bank understand the risks associated with digital assets. A pilot project was completed yesterday in which Elliptic helped Santander identify suspicious activity related to cryptocurrency.
Santander appears to be one of the more blockchain-friendly banks that has published educational materials on cryptocurrencies for their customers. Last year, Santander was the first UK bank to use Ripple to develop a real-time cross-border payment system.
Elliptic, which received investments in 2016 from Santander-backed fintech venture capital firm Mouro Capital, used its discovery solution to discover transactions between Santander customers and cryptocurrency exchanges. The software analyzes these transactions to assess Santander’s indirect exposure to digital assets.
Elliptic CEO Simone Maini commented: “This pilot demonstrates Elliptic’s commitment to helping financial institutions understand their exposure to crypto assets and mitigate the risks of combating crypto money laundering. This successful exercise is clear evidence that working with Elliptic enables leading companies to navigate the rapidly evolving crypto ecosystem with confidence. “
Elliptic’s Discovery was developed in partnership with financial institutions to meet their growing crypto needs. It can identify business opportunities by identifying legitimate crypto entities and flagging illegal crypto activities.
Discovery performs counterparty risk assessments on cryptocurrency exchanges using advanced blockchain analytics and has the most comprehensive coverage of Virtual Asset Service Providers (VASP) with risk profiles for more than 200 of the world’s largest VASPs.
The solution covers 97% of crypto transactions by trading volume and was created with an extensive data set with over 10 billion data points. Discovery gives each VASP an elliptical score that provides a risk metric.
General Partner at Mouro Capital, Manuel Silva Martinez, added: “Elliptic is one of our oldest investments, and they have been a great partner in helping us tackle the complexities of distributed ledger technology (DLT) and the crypto world. We’re excited to see Elliptic’s technology working with Santander to better understand and protect the bank’s business and customers. “