Traditional investors have always been wary of investing in cryptocurrencies. But during the late part of 2020, it was evident that many financial institutions and high net worth individuals are inching towards crypto investments. Babel Finance, with offices in Beijing, Hong Kong, and Singapore, wanted to be the first one to jump on the opportunity of helping high-profile investors allocate cryptocurrencies in their portfolios. Since then, Babel’s growth in the crypto lending space has been exponential as the crypto market exploded in 2021.
In December 2021, Babel announced its partnership with Chainalysis, a leading platform for blockchain data. Babel Finance plans on leveraging Chainlysis’ Know Your Transaction and Reactor services to improve its existing regulatory compliance strategies. With Chainlysis’ KYT, Babel Finance will monitor real-time transactions and send alerts to their compliance team. Not only will this partnership significantly reduce Babel’s manual workflow but also provide a different degree of compliance from both local and global regulations.
Like TransUnion partnered with Spring Labs to enable crypto lenders to check consumer credit scores, Chainalysis Reactor can track crypto transactions to real-world entities. Using Chainalysis Reactor, Babel Finance can keep track of fraudulent and legitimate activities. Babel Finance’s new innovative crypto lending compliance will help ensure the safety of its client’s investments while following the Anti-Money Laundering (AML) regulations. With significant financial institutions as its client, Babel Finance plans to have fail-proof security and reliability controls while handling large and flexible funding requests.
Babel Finance also helps investors mitigate the market risks on their crypto investments. It takes pride in having bank-level asset risk checking models used for its risk control system to reduce market risks to the minimum. The models support several cryptocurrencies, and to ensure the security of client assets, Babel Finance employs third-party custody, multi-authorization, hardware wallet storage, and much more. Babel has a team of experts hailing from first-tier finance institutions such as PwC, China Merchants Bank, Lazard, Deutsche Bank, etc. Babel Finance’s expertise and experience in cryptocurrency financing services give them a cutting edge.