Blockchain-Based Know-Your Transactions

Know Your TransactionsBlockchain technology offers an innovative, secure, and decentralised way to transfer digital assets. However, this growth has also led to an increase in illicit activities such as hacks, thefts, money laundering, terrorism financing, and fraud. 

In response to these challenges, there is a growing demand for blockchain-based solutions that can monitor and mitigate illicit activities in digital asset transfers. This is where Blockchain-Based KYT (Know Your Transaction) comes in.

What is Blockchain-Based KYT (Know Your Transaction)?

KYT is a real-time transaction monitoring solution that helps businesses and financial institutions detect, mitigate and report illicit activities in digital asset transfers. By leveraging the security and immutability of blockchain technology, KYT provides a comprehensive solution to monitor digital asset transactions and identify potential risks.

What are the Benefits of KYT?

Being able to know your transactions comes with numerous security benefits. These are not limited to: 

  1. Easy integration into existing TradFi systems: Traditional Financial systems conduct KYC as well as monitor the transactions of users to detect those that may be associated with illicit activities, even before they are completed. Blockchain-based KYT mirrors this procedure and provides an even more comprehensive view of the entire transaction lifecycle. 
  2. Compliance with existing regulatory frameworks: KYT also integrates with existing compliance and regulatory systems, providing a seamless solution for businesses to monitor and mitigate potential risks. This integration ensures that the KYT system is fully compliant with existing regulatory frameworks and provides businesses with the confidence they need to continue operating in the digital asset space.
  3. Automated KYT screening allows for Easy processing of large volumes of transactions: The transaction monitoring engine is automated, hence millions of addresses and transactions can be screened in a matter of seconds.

How can KYT Improve Wallet-as-a-Service Architecture?

By integrating KYT’s real-time monitoring and risk assessment capabilities, THRESH0LD offers clients a more secure and reliable digital asset self-custody and transfer experience. KYT’s ability to help digital asset businesses maintain regulatory compliance can provide peace of mind for clients and help to build trust in the digital asset space. 

How THRESH0LD’S KYT works: 

THRESH0LD’s built-in compliance engine verifies both inbound and outbound transactions against databases of addresses associated with criminal activities such as thefts, hacks and fraud including OFAC global sanctions watchlist. This helps to ensure that your addresses and services are not reported and placed on the global blacklist of suspicious activities.

With THRESH0LD’s KYT, you benefit from:

  • screening of addresses sending in funds to your business
  • screening of addresses to which withdrawal requests are made by users
  • flagging suspicious transactions for further review
  • creating custom AML/CFT rules to maximise robustness
  • tracking across multiple assets and transaction thresholds
  • adding a custom list of addresses you want to track

Why is this important to your business?

Within a week, you will:

  • minimise risk, maximise safety and protect your business
  • enhance regulatory compliance best practices
  • secure your business from high risk & fraudulent activities

Want to know your transactions and stay safe?

Get in touch!



THRESH0LD offers a single, simple-to-integrate API that helps digital asset businesses such as crypto exchanges, payment processors and OTC solutions cut tx fees, save time and enhance security.

THRESH0LD MPC supports 44 blockchain protocols and a DeFiBridge that enables swaps across thousands of assets.

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