Elliptic, the leader in digital asset decisioning, has announced an industry first with the launch of its Stablecoin Risk Management Suite for banks and other financial institutions (FIs).
Designed in partnership with Global Systemically Important Banks (G-SIBs), Issuer Due Diligence is the first solution in the suite and will enable banks and FIs to meet compliance obligations, manage counterparty risk, and detect illicit financial activity, empowering them to confidently service stablecoin issuers and position themselves as first-movers in this rapidly growing market.
Stablecoin transaction volumes have surged to $4.5trn across 1.2bn transactions in the last 30 days. This rapid growth in stablecoins is in part due to key advantages such as instant settlement, instead of several business days, bypassing intermediaries, therefore reducing transaction costs and providing 24×7 availability. As global regulatory frameworks increasingly enable traditional financial systems to integrate with digital assets, stablecoin adoption is expected to significantly accelerate, with forecasted supply to hit $2 trillion by 2028, up from $250 billion in 2025.
Stablecoins have become an inflection point in the maturity of the crypto ecosystem, and the nexus between TradFi and crypto.
“At Elliptic, we’re proud to be setting the standard for stablecoin risk management for traditional financial institutions,” said James Smith, Co-founder of Elliptic. “As the nexus between TradFi and crypto, stablecoins are reshaping the future of money, and banks and other FIs need robust, crypto-native risk management solutions designed for them to engage confidently with this rapidly growing market. With the launch of Issuer Due Diligence, Elliptic is meeting that need.”
In some jurisdictions, regulations stipulate that stablecoin issuers will need to hold reserves in federally regulated institutions, and banks that are able to service this requirement have the opportunity to unlock new revenue streams and serve this growing market.
Banks and FIs that hold fiat reserves for issuers will need to perform due diligence on the issuer and token in order to meet their compliance obligations. Along with all types of digital assets, stablecoins carry the risk of sanctions exposure, theft and money laundering, but also have the benefit that the issuer can freeze the tokens. However, due to the speed at which crypto infrastructure operates, Banks and other FIs require a solution that allows them to screen at scale to protect themselves against this risk.
Banks and FIs can now assess stablecoin issuers and distributors with greater precision because Issuer Due Diligence enables address-level analysis and risk monitoring both within and beyond wallet clusters. Banks and FIs can track how wallet behavior and associated risk evolves over time, a key requirement for meeting banking compliance standards.
This addresses a complex but crucial need, giving banks and FIs the confidence to onboard and monitor stablecoin issuers while meeting the high compliance expectations of traditional finance without relying on fragmented, ineffective tools.
Key functionality includes:
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Custom cluster analysis
Custom cluster analysis creates bespoke clusters of individual addresses to assess specific risk profiles, independent of broader cluster groupings. -
Track value flows across addresses
Visualise how value moves into and out of addresses over time, including interactions with indirect counterparties -
Access transaction-level detail
Review direct transactions with full transparency, including amounts, direction (sent/received), counterparty categories, locations and the tx hash -
Understand holistic exposure
Identify activity across every blockchain the address is active on, helping you assess total risk -
Monthly activity breakdown
Analyse historical activity patterns, enabling trend identification, behavioral analysis, and time-based comparisons
“Issuer Due Diligence has been developed in partnership with G-SIBs and demonstrates Elliptic’s leadership in the digital asset industry. This is the first stablecoin solution designed specifically for banks and other FIs to deliver the highest standards of compliance, transparency, and risk management. We’re not just facilitating adoption, we’re enabling banks to lead it,” concluded Smith.