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Chainalysis' 'Kryptos' Tool Is an Inside Look for Outside Investors

Chainalysis' 'Kryptos' Tool Is an Inside Look for Outside Investors

Chainalysis' 'Kryptos' Tool Is an Inside Look for Outside Investors

Kryptos is the firm’s first product for institutions, joining KYT, an anti money laundering tool, and Reactor, which traces criminal money flow.

Kryptos is the firm’s first product for institutions, joining KYT, an anti money laundering tool, and Reactor, which traces criminal money flow.

Kryptos is the firm’s first product for institutions, joining KYT, an anti money laundering tool, and Reactor, which traces criminal money flow.

AccessTimeIconNov 12, 2019, 2:00 PM
Updated Aug 18, 2021, 11:49 PM

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Chainalysis is building a crypto-space risk data clearinghouse for financial institutions.

Its new Kryptos platform will help institutions parse regulatory hazards and build risk assessment models.

Kryptos "is our step towards financial institutions, so they can have the transparency they need to build risk management programs and integrate into the crypto economy,” Chainalysis co-founder and COO Jonathan Levin said.

It’s the blockchain analysis firm’s first product to specifically target institutional players, joining KYT, the exchange-facing anti money laundering software, and Reactor, which helps investigators trace criminal money flows.

Those products help governments, crypto companies and investigators analyze their sectors of the crypto economy, Levin said. But while those entities grasp the larger crypto ecosystem, crypto-curious investors, including the banks and advisors not already involved, have no clear point of entry.

That could stymie investment. Chainalysis’ solution: build a “trusted and referenced” dataset for new market entrants.

Levin said:

“If you are in a financial institution and trying to understand who the major players are what assets are trading where they are registered, how their activity looks on the blockchain, and how to make sure you're managing your risk appropriately, you’ll log into Kryptos and see those top counterparties you’ll be wanting to do business with.”

The product, still in beta and set to launch early next year, features a mix of manually-collected data to give them that view. Chainalysis’ employees compile and update reams of regulatory, compliance, and business interest information in one place.

Levin said:

"We find that Kryptos is a good way for someone to get that high level overview, really a good starting point for someone to do a deeper dive investigation.”

That, he claimed, is good for everyone: "All players in the cryptocurrency ecosystem stand to benefit from increased transparency.”

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