TRM Labs and Finray Technologies unite to offer integrated cryptocurrency and traditional currency surveillance
This integrated platform delivers instant risk notifications for questionable cryptocurrency transactions spanning various blockchain networks, all within the identical operational framework used for traditional payment oversight.
A strategic collaboration has been established between blockchain intelligence platform TRM Labs and banking infrastructure company Finray Technologies, resulting in an integrated monitoring solution that oversees both cryptocurrency and traditional fiat currency transactions simultaneously.
The integration combines Finray's compliance and decision engine known as XZiel with TRM's blockchain intelligence capabilities, facilitating real-time alert triaging, automated escalation procedures, comprehensive case management, and risk evaluation spanning both crypto and fiat transaction types, as the two companies revealed in their Tuesday announcement.
As stablecoin settlement mechanisms and traditional fiat payment systems grow more intertwined, and with emerging regulatory frameworks like Europe's Markets in Crypto-Assets (MiCA) coming into effect, financial institutions that operate across both sectors now need comprehensive unified monitoring capabilities, according to statements from Finray Technologies and TRM Labs.
The integrated platform aims to assist financial institutions in establishing organized, transparent monitoring frameworks that comply with MiCA regulatory standards and anti-money laundering responsibilities, thereby simplifying the market access process for entities subject to regulatory oversight.
Bitcoin, Ethereum, and other blockchains covered
Among the primary capabilities are instant risk notifications for questionable cryptocurrency transactions, utilizing an identical operational workflow to that employed for conventional payment monitoring systems. The blockchain networks encompassed by this system include Bitcoin, Ethereum and Tron.
The platform enables wallet screening functionality during the client onboarding phase as well as continuous ongoing monitoring, evaluating the risk profile of wallet addresses in both on-chain and off-chain operating environments.
Additionally, the system maintains an automated, comprehensive, time-stamped audit trail that captures detailed documentation explaining the rationale behind flagging an activity as high-risk, identifying which personnel reviewed the case, and recording the final determination made, providing essential documentation for regulatory inspections or audit reviews.
Aimed at banks expanding into crypto
The newly developed system from Finray and TRM Labs targets cryptocurrency exchanges, custodial service providers catering to institutional clientele, corporate treasury departments, traditional banking institutions, and electronic money institutions seeking to broaden their cryptocurrency service offerings or facilitate crypto on-ramp and off-ramp capabilities, according to the companies' statements.
"Compliance teams can't manage fiat and crypto risk in separate systems anymore."
Oleksandr Potapenko, CEO of Finray
"Embedding TRM's blockchain intelligence directly into XZiel gives our customers a single, auditable view of risk across both rails — where they can hold, clear, escalate, and document decisions within one environment. That is what operating under MiCA and evolving supervisory expectations actually demands," he added.
An increasing proportion of financial institutions are currently advancing into the cryptocurrency sector. According to data reported by Bitcoin financial services company River last month, more than half of the top US banks have started or announced plans to offer Bitcoin-related services, such as trading or custody.