Banks and other financial institutions are always looking for ways to minimize their risk against other currencies. Or in some cases, they want to hedge against blockchain risk. Elliptic, a well-known bitcoin market analysis company, has unveiled their new tool which should make it more comfortable for banks to work with the bitcoin blockchain.
Elliptic’s New Tool Can Be Beneficial
Although most bitcoin users are not a big fan of blockchain analysis by any means, the technology can have its merits. Elliptic, together with Silvergate Bank, created a new tool to vet businesses over the blockchain. Moreover, this new technology will aid in achieving proper compliance and regulatory requirements. Since banks are uncomfortable about vetting parties over the bitcoin blockchain, a solution had to be found. Whether or not this is the right solution to do so, remains to be seen.
A lot of businesses transacting with bitcoin often find themselves in a pickle when it comes to finding a banking partner. Traditional finance and bitcoin do not mix well together and that situation will not change anytime soon. Elliptic’s new tool may help smoothen the process