Blockchain intelligence platform TRM Labs has partnered with banking infrastructure company Finray Technologies to build an integrated system to monitor both crypto and fiat transactions.
Finray’s compliance and decision engine, XZiel, has been integrated with TRM’s blockchain intelligence tools to enable real-time alert triage, automated escalation, case management, and risk assessment across crypto and fiat transactions, the companies announced on Tuesday.
According to Finray Technologies and TRM Labs, stablecoin payments and fiat payment flows are becoming increasingly interconnected, and new regulations such as the European Market for Cryptoassets (MiCA) require unified supervision for financial institutions operating in both markets.
The system is designed to help financial institutions implement structured, auditable monitoring programs in line with MiCA requirements and anti-money laundering obligations, and streamline market access for regulated companies.
MiCA covers a wide range of aspects, from crypto asset regulation and provider requirements to jurisdictional responsibilities. sauce: cointelegraph
Covers Bitcoin, Ethereum and other blockchains
Key features include real-time risk alerts for suspicious cryptocurrency transactions using the same workflow as traditional payment monitoring. Eligible blockchains include Bitcoin, Ethereum, and Tron.
The system supports wallet screening and continuous monitoring during onboarding to assess the risk of wallet addresses in both on-chain and off-chain environments.
It also automatically records a detailed, time-stamped audit trail to document why an activity was flagged as risky, who reviewed it, and what decisions were made during regulatory and audit reviews.
Targeting banks expanding into virtual currency
The companies said Finray and TRM Labs’ new system is aimed at exchanges looking to expand their virtual currency offerings and enable virtual currency on-ramp and off-ramp services, custodians serving institutional customers, corporate finance, banks, and e-money institutions.
Related: TRM Labs closes $70 million investment round for $1 billion, becoming crypto unicorn
“Compliance teams can no longer manage fiat and crypto risks in separate systems,” Finlay CEO Oleksandr Potapenko said in a statement.
“By incorporating TRM’s blockchain intelligence directly into XZiel, customers will be able to see a single, auditable view of risk across both rails, allowing them to suspend, clear, escalate, and document decisions within one environment. This is exactly what operations under MiCA and evolving supervisory expectations demand,” he added.
A growing number of institutions are already moving into cryptocurrencies. Bitcoin financial services company River said last month that more than half of major U.S. banks have started or announced plans to offer Bitcoin-related services such as trading and custody.
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