Nasdaq Verafin Links with Stablecore to Monitor Fiat and Digital Asset Transactions

Nasdaq ($NDAQ)’s financial crime detection platform Verafin is working with digital asset infrastructure company Stablecore to build a system that monitors both fiat currency and digital asset transactions together. During an Q&A with the Tennessee Bankers Association, Stablecore revealed it is integrating with Nasdaq’s Verafin, as well as Chainalysis and TRM Labs.

As of May 15, no joint press release has been issued by Nasdaq and Stablecore regarding this collaboration. The key focus of the integration aims to reduce information silos between traditional financial transactions like wire transfers, cards, and payments managed separately from stablecoin trading systems. By connecting digital asset transaction data into existing financial crime monitoring frameworks, the goal is to allow banks to view customer and counterparty risk information on a single screen.

Verafin provides fraud detection, anti-money laundering (AML), terrorist financing prevention, and sanctions screening capabilities. Financial institutions can use these features to analyze both transaction types and counterparties together. Nasdaq states Verafin’s consortium network connects over 2,800 financial institutions with approximately 850 million counterparty records, analyzing about 1.8 billion transactions weekly.

Stablecore supports banks and credit unions in offering stablecoins, tokenized deposits, and digital asset accounts within existing banking systems. The company explains it connects digital asset functionality to core banking systems and digital banking platforms alongside compliance tools. Stablecoins are cryptocurrencies designed to be pegged to fiat currency or specific assets, while tokenized deposits represent bank deposits as blockchain-based tokens.

Stablecore recently partnered with Q2 Holdings ($QTWO) in the second quarter of this year to help banks integrate stablecoin and digital asset account features into their existing digital banking environments. While the Q2 partnership focused on integrating digital asset services, the Verafin collaboration emphasizes linking financial crime detection and AML management.

Stablecore also confirmed ongoing partnerships with Chainalysis and TRM Labs, which analyze digital asset transaction flows and wallet risk information. These could potentially connect to Verafin’s financial crime management system in future integrations. As banks expand digital asset services, they must manage not only transaction records but also KYC (know your customer), sanctions screening, and suspicious activity reporting within their compliance processes.

While the collaboration aims to streamline monitoring of both traditional and blockchain transactions under one framework, specific details such as which data will be shared with Verafin, the timeline for commercialization, and target financial institutions remain undisclosed. The initiative expands Stablecore’s ongoing efforts to connect banking systems with digital asset infrastructure into the financial crime management domain, pending further announcements on integration scope and participating institutions.