Nasdaq Verafin And Stablecore Team to Aid Banks in Detecting Fraud – Digital Transactions

Financial institutions and networks have for years worked out technologies that detect criminal activity in markets that rely on fiat currency. Now, solutions are emerging to attack fraud that takes place using either traditional or digital money, or both.

In the latest development, risk monitor Nasdaq Verafin said it will work with Stablecore, which supplies stablecoin technology to banks, to offer systems that can help financial institutions detect criminal activity. The move comes as banks are gradually becoming more active in seeking out technology that can help manage digital assets such as tokenized deposits and stablecoins.

The parties say their collaboration will flow transaction details from Dallas-based Stablecore into Nasdaq Verafin’s risk-management system, which they say will present financial institutions with a fuller view of activity and potential crime.  

The new alliance arrives as many banks suffer from a blind spot when it comes to criminal activity in digital money, the companies say. “By integrating Stablecore’s digital-asset infrastructure with Nasdaq Verafin’s holistic financial crimebank management technology platform, we are giving financial institutions visibility into the full scope of their customers’ transactions, so criminals cannot hide no matter where they move money,” says Rob Norris, senior vice president and head of product strategy at Newfoundland, Canada-based Nasdaq Verafin, in a statement.

By detecting and attacking fraud, the new alliance is also expected to help get more banks involved in banking services for stablecoins and other digital assets, the two partners say. “Digital assets become viable within banking when financial institutions can have the same very high standards around compliance and fraud detection as their existing products,” says Alex Treece, chief executive and cofounder at Stablecore, in a statement.

The companies’ integration is live in beta tests with “select customers,” the two companies say. These include Amarillo National Bank, which plans to roll out the service in the fourth quarter and the first three months of next year. The bank is eager to meet what it sees as growing demand for “emerging payment methods,” says William Ware, president, in a statement.

Nasdaq Verafin says it serves more than 2,800 financial institutions holding some $13 trillion collectively in assets. The company was formed in February 2021 when Nasdaq Inc., the operator of the Nasdaq stock exchange, acquired risk monitor Verafin for $2.75 billion in cash.