ConsenSys Launches Compliance Product For DeFi

Ethereum venture studio ConsenSys has released a new compliance service that can analyze transactions conducted by Decentralized Finance (DeFi) companies, the firm said in a press release this Monday.

According to the announcement, the new regulatory and compliance platform focuses on DeFi projects and crypto exchanges, enabling them to analyze trades for tokens issued on the Ethereum network. Called Codefi Compliance, the new tool will be able to track more than 280,000 different tokens issued on Ethereum, such as those built using the ERC-20 and ERC-721 standard.

Already compatible with ETH 2.0, Ethereum’s upcoming scaling network upgrade, Codefi will enable its clients to track and monitor crypto assets, as well as watch fund flows, all while compiling full data analysis. The goal of the project, according to the press release, is to allow businesses to benefit from digital assets, by providing them with a way to make activity on the decentralized financial infrastructure safer, transparent, and easier to trace.

The Global Co-Head of Codefi, Lex Sokolin, said:

“Providing robust AML/CFT compliance for Ethereum-based digital assets is a keystone step in bringing the institutional financial industry to decentralized finance. Codefi Compliance is the next module in our product suite to eliminate complexity and risk in using DeFi, and help any business benefit from using digital assets.”

Although the company is putting itself in direct competition with data analytics firms such as Chainalysis and Elliptic, it will mainly focus on the Ethereum blockchain, leaving the two firms a big chunk of the market, namely the Bitcoin network. ConenSys is not the only one putting their eyes on the Ethereum blockchain. Recently, the Coinbase-backed Securitize digital securities issuance platform announced it will be expanding its compliance services utilizing smart contracts deployed on Ethereum.