Cronos, an open-source Ethereum compatible blockchain, is looking to monitor high-risk transactions and enhance network security through its latest partnership with blockchain security firm Chainalysis.
With the latest deal, Chainalysis has added Cronos’ native token CRO and all CRC-20 tokens to its KYT (Know Your Transaction) monitoring solution. The compliance solution will allow institutions, digital asset exchanges, and cryptocurrency funds to monitor transactions of CRC-20 tokens, the companies announced Wednesday.
We’re thrilled to announce our partnership with @cronos_chain!
This integration will further advance institutional adoption of the Cronos #blockchain⛓ and digital assets deployed on Cronos. Read on to learn more. https://t.co/YsRxSfGMJK pic.twitter.com/x46qpBnX7h
— Chainalysis (@chainalysis) April 13, 2022
Chainalysis KYT solution is a transaction monitoring service that tracks real-time transactions of all crypto-assets in order to recognize high risk activity. Presently, several companies including BNY Mellon, PayPal, Genies, and Robinhood leverage the services.
“The Chainalysis data platform is one of these essential foundations, especially for operators of onramp/offramp services and anyone who needs to identify potentially high-risk transactions,” Ken Timsit, Managing Director of Cronos, said.
With the latest partnership, Cronos aims to make its multi-chain protocol more secure, especially at a time when bridge chains continue to become the target of hackers. Ronin bridge, the sidechain developed by Axie Infinity creator Sky Mavis, saw more than $600 million worth of funds drained from its chain after hackers were able to access validator keys.
What made the hack more successful was that nobody noticed the security breach until a week later after it happened. By leveraging the Chainalysis’ compliance software, Cronos will be able to observe transactions and track risky activities in real-time.