Elliptic launches crypto risk tool for banks

Crypto-asset risk company Elliptic has launched a purpose-built product designed for banks.

The company claims Elliptic Discovery gives compliance teams the insights they need to identify flows of funds into and out of crypto-assets and assess the risk they pose.

A press release states financial institutions will be able to “manage risk, exploit new opportunities, and meet stringent regulatory requirements” thanks to its profiles of more than 200 global crypto exchanges.

The document adds that Elliptic Discovery offers a range of identifiers and risk indicators to allow banks to identify and assess the risk posed by their exposure to crypto-assets through these exchanges.

This includes information about these businesses’ corporate entities, jurisdiction, regulatory status, and compliance policies, as well as blockchain insights into the provenance of crypto-assets that they have handled.

Dr James Smith, CEO and co-founder of Elliptic, said: “For too long, banks’ lack of visibility into the crypto-asset ecosystem has led to zero-tolerance for this emerging asset class.

“This has frustrated their customers, while they have remained blind to the actual risks posed by their exposure to crypto-assets.

“Elliptic Discovery changes that by enabling banks to shine a light on their customers’ crypto-asset activity and take a risk-based approach.

“Not all crypto-asset exchanges are alike, and Elliptic Discovery will allow banks to make this distinction and seize the opportunity to work more closely with these businesses, based on an evidence-based assessment of the risk.”

Elliptic Discovery was developed in close cooperation with a number of financial institutions, including many of the firm’s investors and current customers.