Chainalysis KYT Crypto Transaction Monitoring

Chainalysis is a blockchain data company co-founded in 2014 and headquartered in New York. It provides data, AI-powered software, services and research to government agencies, exchanges, financial institutions and cybersecurity firms in more than 70 countries, helping them understand who is behind crypto flows and manage illicit-finance risk.

KYT (Know-Your-Transaction) is its real-time crypto transaction monitoring engine. Through an API it risk-scores incoming and outgoing transfers against Chainalysis entity data built from hundreds of clustering heuristics, measuring direct and indirect exposure to sanctioned or high-risk services. Compliance teams tune alert rules, manage cases and escalate alerts into the Reactor investigation suite. Banks use it for custody, stablecoin and tokenized-asset programs.

• Real-time risk scoring: Incoming and outgoing transfers are assessed automatically as they occur.
• Indirect exposure tracing: Funds are traced back as many hops as needed until an identified service is reached.
• Configurable rules: Teams set thresholds, severity, typologies and entity- or user-specific rules.
• Behavioral and sanctions alerts: Flags suspicious patterns and exposure before and after sanctions designations.
• Case management: Bulk alert handling, status tracking and collaboration for compliance teams.
• Reactor escalation: Any alert can be opened in Reactor for deeper investigation.

A licensed crypto-asset exchange in Vietnam's pilot market can screen every deposit and withdrawal for sanctions and illicit exposure. A bank holding tokenized assets for clients can monitor holder flows. A payment company settling cross-border stablecoin transfers can check counterparties and source of funds.

KYT generates alerts within seconds of an on-chain transaction, allowing risky funds to be blocked or escalated before exposure grows. Coverage spans 400+ networks and 50M+ tokens. Chainalysis reports 1,500+ customers in 70 countries and use by 50+ regulators and FIUs, giving institutions a data basis shared with supervisors. BitMEX reported an 88% reduction in AML risk exposure.

Banks and payment firms are launching custody, stablecoin and tokenization programs and must extend AML, sanctions and fraud controls to on-chain activity under FATF standards. As Vietnam pilots a regulated crypto-asset market, licensed participants and banks will need transaction monitoring that regulators recognize.

Co-founded in 2014 by CEO Jonathan Levin; legal entity Chainalysis Inc., New York. Serves customers in 70+ countries, with 50+ regulators and FIUs using its data. Product line also includes Reactor, Address Screening, VASP Risking, Sentinel, Alterya fraud prevention and Hexagate Web3 security. In 2026 it launched Blockchain Intelligence Agents and joined the Solana Developer Platform as a compliance partner.