Top on-chain data analytics firm, Chainalysis, has completed an agreement with one of the leading lending banks in the Bahamas (Capital Union Bank) for the latter to launch its virtual asset services. The new partnership is one of the direct benefits of the nation’s adoption of crypto-friendly policies.
Industry analysts opine that this partnership will soon open the door for more such collaborations. The bank will start providing crypto-related services to its clients through Chainalysis’ assistance in risk management and compliance with regulatory policies.
How Chainalysis Will Assist Capital Union Bank
Capital Union Bank will rely on Chainalysis’ know your transaction (KYT) and reactor features to launch to provide its crypto-related services. This KYT app can track live transactions involving virtual assets and identifies potential high-risk transactions.
The reactor app will assist the bank in detecting any suspicious trade activities. Chainalysis’s world-class tech has been deployed in more than 75 nations via multiple firms. As the Bahamas-based bank prepares for the launch of its crypto services, its CEO (Patrick Zbindera) opines that this launch will help the bank’s customers to gain proper exposure to the virtual asset market.
Zbindera added that “through this Chainalysis collaboration, the bank can ensure that its customers are safely exposed to the crypto market.” In his opinion, one of Chainalysis’ top-level executives, Jonathan Levin, stated that the collaboration would facilitate crypto adoption in the island city.
More Hacking Incidents Have Occurred In The Defi Space Than In Other Crypto Sectors – Chainalysis
In one of its latest reports regarding the state of security of the crypto industry, a Chainalysis study revealed that DeFi platforms are the most vulnerable to hacking incidents. The report claimed that DeFi platforms lost nearly $3.5B to hackers in the last 12 months. Proof that supports the study is that crypto exchanges and other crypto-related sub-sectors have lost a whopping sum of $1.4B since this year alone.
The Chainalysis report further said, “71% of all the stolen digital assets happened in the DeFi sector alone. However, it is noteworthy that this figure has increased to about 96% since the start of this year compared to the 30% in the DeFi space two years ago.” Out of the top ten DeFi hacks, more than seven of them had resulted in the loss of nearly $1.7B worth of digital assets.
Ethereum Gave Investors More Gains
In a separate report, Chainalysis remarked that the combined realized gains on Ethereum were more than that of bitcoin as investors made a combined profit of $76.4B from the second-largest crypto while that from BTC was $1.65B less.
The data explained that the growing popularity of the DeFi space last year resulted in this eth dominance as most of them were built on the Ethereum blockchain. Despite successive attacks in the DeFi space, it remains one of the fastest-growing sectors of the crypto industry.