Profile
- Industry: Banking and Financial Services
- Segment: Correspondent Bank
- What they do: Global correspondent bank providing 24/7 digital financial infrastructure
- Use case: Stablecoin compliance and ecosystem monitoring
- Challenges:
- Needed to ensure compliance with Markets in Crypto Assets Regulation (MiCA)
- Required comprehensive monitoring of stablecoin ecosystem
- Needed to screen both direct and indirect counterparties
- Had to maintain regulatory compliance while scaling operations
- Solutions:
Challenge
In August 2024, Banking Circle launched EURI, one of the first EURO stablecoins compliant with the Markets in Crypto Assets Regulation (MiCA). With the launch of EURI, Banking Circle needed to ensure comprehensive compliance while also providing an innovative digital money solution. The stablecoin, designed to offer 24/7 access to digital money with out-of-hours settlement capabilities, required robust monitoring and risk management systems to prevent exposure to illicit actors.
Key requirements included:
- Maintaining compliance with MiCA regulations
- Monitoring the entire ecosystem of EURI transactions
- Screening both direct and indirect counterparties
- Scaling compliance operations efficiently
- Ensuring transparency and full visibility of required transactions
- Ability to enhance the monitoring program over time
Approach
Banking Circle has maintained a partnership with FinTrace since 2022, to identify the risk associated with a VASP and for VASP due diligence. The partnership intensified in the six months leading up to EURI’s launch in August 2024, with a focus on implementing comprehensive ecosystem monitoring and wallet screening capabilities.
As part of a targeted RFP process, Banking Circle’s compliance team recognized FinTrace as an ideal fit for their compliance needs. FinTrace comprehensive ecosystem monitoring capabilities provided the depth of oversight necessary for a bank-backed stablecoin, while their robust wallet screening functionality ensured thorough risk assessment of all counterparties.
The scalability of FinTrace compliance solutions was particularly appealing, as it allowed Banking Circle to grow their digital asset operations without compromising on regulatory obligations. Additionally, FinTrace proven expertise in digital asset compliance made them a natural partner for navigating the complex regulatory landscape of stablecoin issuance and management.
Verified outcomes and evidence
Working with FinTrace has enabled Banking Circle to:
- Implement comprehensive ecosystem monitoring for EURI
- Screen wallets effectively for regulatory compliance
- Monitor ongoing risks from a financial crime perspective
- Drive operational efficiency without requiring additional resources
- Make faster, data-driven decisions
As Patrick Green, Head of AML and UKM at Banking Circle SA, explained: “From day one, FinTrace has been fantastic to work with. They continue to work with us in terms of how we can actually drive efficiency rather than hiring additional resources and additional controls to cater for one sector. How we can utilize teams and existing models that we already have, but benefit from better data, better speed of information so that we can make decisions quicker.”