Qredo, a cryptocurrency custody and settlement technology firm aims at bringing digital assets in line with anti-money (AML) guidance set out by the Financial Action Task Force (FATF).
The FATF set a guidance in mid-2019 to include firms that handle crypto transactions. The guidance requires exchanges, trading desks and custodians to transfer personally identifiable information along with crypto transactions over a certain threshold, known as the "Travel Rule".
Qredo has raised $80 million in funding this years and is focused on interoperability with other solutions such as TRISA, TRP, TRUST, Sygna, VerifyVASP, and Notabene. Furthermore, there is also the atomic swap option where both counterparties use Qredo's multi-party-computation custody infrastructure.
The Qredo approach is also useful in the way that it plugs into a range of blockchain analytics tools that man firms will already be familiar with, said Ben Whitby, the firm's head of compliance. This includes the likes of Chainanalysis, Eliptic, TRM Labs, ComplyAdvantage, Coinfirm,, VASPNet, and Crystal Blockchain.
Whitby added, that most of the crypto firms they spoke with had spent a good deal of time and money training up staff to use blockchain analytic tools of one sort or another and it made sense to combine trade and compliance work flows with APIs.
"In the event of an investigation from an enforcement agency you can demonstrate completely that a transaction had the right checks undertaken; a sanctions check, the sending of metadata, and feedback from the beneficiary and so on," Whitby said in an interview. "It's all there, instead of having to pull logs and a lot of painful cross-referencing and reconciliation."