USDT TRC20 analytics: how to implement AML checks?

USDT TRC20 transactions on the Tron blockchain have increased, as shown in the image below. There are currently more USDT transfers on the Tron blockchain than on the Ethereum blockchain, which remain one of the largest today. As USDT TRC20 is one of the top traded tokens on Tron, it is therefore crucial for companies to implement AML checks on analytics on their transactions to prevent illegal misuse of the token.

What is Tron?

Tron is a blockchain-based operating system created in 2017. As of August 2022, Tron’s market capitalization accounted for $6,409,733,237.

How many transactions can Tron handle per second?

Tron has a 2,000 transaction per second (TPS) capability. It means the network can process up to 2,000 transactions in one second. For instance, the network recorded 3,634,778,112 transactions on August 1st, 2022.

Tron aims to support content sharing and entertainment, enabling creators to connect directly with their audience. Therefore, it removes the need for a centralized third party from the equation.

Tron is also popular for creating decentralized applications, or DApps. DApps are applications that run on blockchains and present various uses. For example, a decentralized exchange (DEX) is one of the most popular kinds of dApp.

What are TRX and TRC20? 

Tronix or TRX is Tron’s native cryptocurrency, while TRC20 is a token standard supported by the Tron blockchain. The network also supports TRC-10 and TRC-721 token standards.

What is USDT?

USDT, issued by Tether, is the largest stablecoin and the third largest cryptocurrency by market cap. Its price is pegged to the US dollar and remains stable at more or less $1 per unit.

Is USDT an ERC20?

Yes, USDT is an ERC20 token. But, it is also a TRC20 token on Tron, for instance.

USDT was introduced on the Tron blockchain in October 2019 as a TRC20 token. On Tron, USDT’s market cap amounts to over $32 billion, with over 32 billion USDT tokens in circulation. Since its launch on Tron, USDT has been growing with more and more transactions and an increasing transaction value.

What is the difference between ERC20 and TRC20?

ERC20 and TRC20 are two different token standards on blockchains. ERC20 is a token standard on the Ethereum blockchains, while TRC20 is a token standard on the Tron blockchain.

What network does USDT use?

USDT is built for several blockchain networks: Bitcoin (Omni and Liquid protocol), Bitcoin Cash (SLP), Ethereum, Tron, EOS, Algorand, Solana, and OMG Network. First issued as an ERC-20 token on Ethereum, Tether recently announced support of USDT on the Tezos blockchain.

How to track USDT TRC20 transactions?

It is possible to track USDT funds on blockchain explorers like Etherscan for USDT ERC20, Tronscan for USDT TRC20, and Solscan. In addition, blockchain analytics tools like Scorechains also help compliance teams track USDT against money laundering and terrorism financing risks.

Using analytics tools for USDT TRC20

USDT is one of the most traded TRC20 tokens on the Tron network and is supported by many crypto projects. It is therefore vital to apply AML checks on USDT TRC20 transactions and ensure compliance with crypto regulations. To do so, compliance teams can use Scorechain USDT TRC20 and ERC20 analytics tools and monitor USDT funds on Ethereum and Tron.

The Scorechain crypto compliance solution offers a complete crypto transaction monitoring suite, including:

• Blockchain identifying data;
• Automatic importation of sanction lists;
• Risk Scoring for incoming and outgoing ERC20/TRC10/TRC20/BEP20 tokens, including USDT;
• Risk Indicators for automatic identification of potential AML red flags; and
• Real-time alert for live monitoring.

Would you like to discover more about Scorechain’s blockchain analytics and crypto compliance solution? Don’t hesitate to request a free demo and get a tour of the platform.

About Scorechain

Scorechain is a Risk-AML software provider for cryptocurrencies and digital assets. As a leader in crypto compliance, the Luxembourgish company has helped over 200 customers in 45 countries since 2015, ranging from cryptocurrency businesses to financial institutions with crypto trading, custody branch, digital assets, customers onboarding, audit and law firms, and some LEAs.

Scorechain solution supports Bitcoin analytics with Lightning Network detection, Ethereum analytics with all ERC20 tokens and stablecoins, Litecoin, Bitcoin Cash, Dash, XRP Ledger, Tezos, Tron with TRC10 and TRC20 tokens, and BSC with BEP20 tokens. The software can de-anonymize the Blockchain data and connect with sanction lists to provide risk scoring on digital assets, transactions, addresses, and entities. The risk assessment methodology applied by Scorechain has been verified and can be fully customizable to fit all jurisdictions. In addition, 300+ risk-AML scenarios are provided to its customers with a wide range of risk indicators so businesses under the scope of the crypto regulation can report suspicious activity to authorities with enhanced due diligence.