Key Notes

Key Notes:

Chainalysis will provide real-time monitoring of Unichain activities, enabling quick response to security threats.The integration includes Reactor investigative tool for fund tracing and entity screening, strengthening institutional-grade security measures.

Chainalysis, a leading blockchain security and analytics company, announced today that it has added support for Unichain, a layer-2 scaling solution launched by Uniswap Labs. The move is aimed at strengthening Chainalysis’ presence in the decentralized finance (DeFi) sector while enhancing Unichain’s security and compliance framework.

Under the terms of the partnership, Chainalysis will integrate Unichain into its platform, offering comprehensive monitoring and support for digital assets, including non-fungible tokens (NFTs), and other Ethereum-compatible digital collectibles.

Beyond token support, Chainalysis will leverage its Know Your Transaction (KYT) technology to monitor all transactions on Unichain. According to an announcement on Thursday, this technology is designed to detect high-risk behaviors and suspicious activities across the blockchain.

As a security partner, the company will alert Unichain to any abnormal token movements or malicious threats, allowing the protocol to take proactive measures to protect users and maintain trust within the ecosystem.

In addition to KYT monitoring, Chainalysis plans to integrate Unichain into its entity screening products, enabling the analysis of wallet addresses for compliance purposes. The firm will also introduce its investigative tool, Reactor, to the Unichain network.

According to Chainalysis, Reactor will allow users to trace the flow of funds, visualize transactions, and detect potential illicit activity within Unichain. The integration of the product into Unichain aims to enhance compliance and security measures, making the protocol safer for institutional and retail users alike.

“[The partnership will] greatly enhance the scope of compliance and investigative workflows for customers while fostering Unichain adoption with security and trust in mind,” Chainalysis noted.

Since its launch last year, Unichain has gained significant traction, attracting major players like Coinbase, Circle, and Lido. The protocol benefits from the strong reputation of its parent company, Uniswap Labs, which oversees the widely used decentralized exchange (DEX) Uniswap. As a result, Unichain has already onboarded over 100 companies within the crypto economy till date.

As for Chainalysis, the company remains a dominant force in blockchain security, consistently developing solutions to address the evolving challenges within the crypto space. Earlier this month, the company introduced advanced tools for assessing Virtual Asset Service Providers (VASPs), incorporating off-chain data to improve risk assessment and compliance processes.

The firm’s offerings provide financial institutions and businesses with a robust compliance framework, ensuring regulatory adherence while mitigating security risks.

In addition to its products, Chainalysis has established strategic partnerships with industry leaders such as Lukka, the Sui Foundation, Notabene, Cronos, and the Bank of New York Mellon (BNY Mellon).

To further solidify its position in the blockchain security sector, Chainalysis recently acquired Web3 security firm Hexagate. While the financial details of the acquisition remain undisclosed, Chainalysis emphasized that the collaboration will enhance its ability to combat crypto-related crimes and fraudulent activities.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.

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