Blockchain analytics firm Elliptic has launched a new due diligence product, "Issuer Due Diligence," designed to help banks and other financial institutions manage the risks associated with stablecoins. The tool provides a detailed view of the historical activity and risk scores of wallets controlled by stablecoin issuers like Tether (USDT) and Circle (USDC).

Several major banks that work with stablecoin issuers are already using the new tool, which is part of Elliptic’s broader Stablecoin Risk Management Suite. The product aims to help these institutions meet their anti-money laundering (AML) and sanctions compliance obligations, as well as manage counterparty risk. This development signals a growing demand for robust risk management solutions as stablecoins become more integrated into the mainstream financial system.

The tool was designed in partnership with Global Systemically Important Banks (G-SIBs) and allows financial institutions to assess a stablecoin issuer's wallet risk before holding their reserves. By providing greater transparency and control, Elliptic's new offering could pave the way for wider adoption of stablecoins by traditional financial players.