Tether joins forces with Shyft to fire up Veriscope

Tether has partnered with Shyft Network to begin active testing of Veriscope – its decentralised compliance framework and smart-contract solution to the Financial Action Task Force’s (FATF) Travel Rule. 

Veriscope links user consent-permissioning with VASP-to-VASP data transmission and ensures VASPs can determine between honest transactions and data attacks. It was designed to act as a decentralised coordination and discovery system, open for any VASP or intermediary as a public utility for data attestation and routing.

The platform provides a decentralised compliance framework and a smart contract platform for VASPs to enable Travel Rule compliance and aims to meet the growing demands of the rising regulatory efforts that have commanded attention and action across cryptocurrency, DeFi, NFTs, stablecoins, and many other elements of blockchain technology. 

This integration marks the initial phases of Tether’s trial of Veriscope which could allow Tether to offer its customers privacy while also solving global compliance requirements for all participants across the ecosystem. It aims to create an experience for customers that maintains openness and ensures peer-to-peer transaction discovery that is compliant with the new FATF Travel Rule requirement.

“We built Shyft to ensure that the ethos of digital asset networks was maintained regardless of the regulatory requirements that would come,” said Joseph Weinberg, co-founder of Shyft Network.

“We are excited to see this public system be put to work by the largest players globally, and are proud to see leading stablecoins, like Tether, maintain decentralisation while allowing the ecosystem to meet regulations.

“We see systems like Veriscope, and networks like Shyft, as critical infrastructure layers to the future of decentralized data coordination and transmission.”

In August of this year, Shyft Network, in collaboration with Tether, Bitfinex and other exchanges, key industry players, and liquidity providers announced the global deployment of Veriscope – a public utility and application stack for solving the Financial Action Task Force (FATF) Travel Rule.

Just a few days ago, Shyft Core, the development team behind Veriscope, announced the open-source release of the infrastructure to enable developers and other VASPs to freely integrate with the platform, Tether will be one of the first to put this infrastructure to the test. 

“Veriscope’s opensource solution to discovering VASPs and transmitting customer information is an interesting use case that’s in line with the ethos of Bitcoin” said, Leonardo Real, CCO of Tether.

“We look forward to continuing to lead the charge.”

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