Chainalysis, the blockchain analysis company for exchanges, government agencies, and financial institutions has added support for XRP to its service. The addition was announced on Chainalysis’ official Twitter account on February 14th.
This addition does not come as a surprise, as Xpring announced the addition of Chainalysis to the XRP ecosystem back in October 2019.
Chainalysis provides compliance and investigation software to the world’s leading banks, businesses, and governments and it empowers its customers to derive insights they can act on. Some of its customers include UNODC (United Nations office of drugs and crime), Binance, Korbit, Barclays, Europol, bitpay, Bitstamp, and Square.
According to a recent coindesk article, Chainalysis is the preferred US government leading crypto analysis contractor and has become the go-to firm for 10 federal agencies, departments and bureaus.
Chainalysis is, right now, doing millions of dollars worth of business each year with the U.S. government, dwarfing its competitors in the young industry of blockchain surveillance. Federal agencies have spent at least $10 million ($10,690,706 to be precise) in American tax dollars on Chainalysis’ tools, services and training since 2015, when Chainalysis was founded, according to 82 records of federal procurement contracts reviewed by CoinDesk. Counting contracts with possible extensions, the company stands to take in more than $14 million.
Chainalysis and XRP
According to the recent announcement, Chainalysis’s work with XRP will start with the top 70 XRP exchanges identified. In the coming weeks, it will also identify major XRP scams and hacks.
This does not come as a surprise since Ripple’s On-Demand Liquidity greatly depends on exchanges. Having top exchanges thoroughly checked and cleared could be part of Ripple’s process to add more ODL exchange partners and roll-out ODL in more countries. ODL customers also rely on exchanges greatly and their confidence in them matters.
At the same time, the crypto space has been plagued by scams in the past. XRP is no exception. We have seen multiple scams on social media, deeply affecting trust in crypto-assets and XRP. Chainalysis’s work can help build more trust and improve the soundness of the XRP ecosystem.