Quantexa Launches Platform to Reduce Stablecoin Strain on Small Banks

Quantexa, a software company for data and analyzes, introduced a product on Wednesday that is intended to help smaller financial institutions to combat crypto-driven crime in the US

The London -based company now offers a cloud -based, anti -money laundry (AML) solution via Microsoft’s Cloud Computing Platform, which is “specially designed for our medium -sized and community banks,” said a press release.

Quantexa said that the pre -packaged product teams enable to investigate financial crimes to make faster decisions with less overhead while retaining accuracy, and notes that banks are being held at the same compliance standards in the US, despite what resources they can have. The product, called Cloud AML, is also intended to reduce ‘false positives’.

A company study published earlier this month showed that 36% of the AML professionals think that digital assets will have the biggest impact on the AML industry within the next five years.

The debut of the product follows the approval of the Stablecoin legislation in the US this summer, which is expected to unlock competition from the will of Bank of Ameerica and Citigroup. With federal rules in force, Stablecoins are expected to become more mainstream.

Some banks follow a future -oriented approach to their products, but most are more concerned about the ability to control the inflow and outflow in the context of financial crime, Chris Bagnall, the head of the solutions of the financial crimes for North -America, Quantexa, Decodeer.

“They just try to find a way to control it, and that’s just about,” he said. “Only the most innovative banks, which are a small handful of this space, are aimed at making a company.”

Banks may see that a customer has received cash or sent cash from a cryptocurrency exchange, but where the funds were outside that a blind spot could be, Bagnall said. If Stablecoins occur more often with daily payments, infrastructure providers can also emerge as common contact points, because funds flow between digital and traditional rails.

In some respects, Stablecoins are asking banks to get a more extensive picture of their exposure to crypto-related risks, Bagnall said. In the past, banks knew they started when they were approached by a crypto-native company, but the same factors can apply to individuals.