Chainalysis Expands DeFi Reach with Unichain Integration

Chainalysis has announced its integration with Unichain, a DeFi-focused Ethereum layer 2, enhancing compliance and investigative capabilities.

Blockchain analysis firm Chainalysis has announced its integration with Unichain, a decentralized finance (DeFi)-focused Ethereum layer 2 (L2) built on the Superchain and powered by Uniswap Labs.

The move will enhance compliance and investigative capabilities within the decentralized finance ecosystem, Chainalysis said.

Unichain, which is being built to be fast, cheap, interoperable, and decentralized, is a new frontier in the Ethereum Virtual Machine (EVM) L2 space.

As part of its launch, nearly 100 crypto companies and protocols are joining the L2, including Coinbase, Circle, and Lido. This rapidly growing ecosystem will enable users to trade faster and more efficiently.

The integration by Chainalysis includes automatic support for all fungible and non-fungible tokens that follow the ERC-20, ERC-721, or ERC-1155 standards.

This will greatly expand the reach of compliance and investigative workflows, enabling the broader adoption of Unichain with an emphasis on safety and trust.

With the integration, Chainalysis KYT (Know Your Transaction) now offers real-time monitoring of Unichain transactions, complete with actionable alerts and continuous screening for high-risk behaviors and suspicious activity.

Additionally, Unichain transactions will be incorporated into Chainalysis’s entity screening products, enabling the effective screening of wallet addresses.

Chainalysis's flagship investigative product, Reactor, is now able to investigate the flow of funds across Unichain.

This capability will allow users to complete investigative workflows, trace transactions, visualize fund movements, and identify potential illicit activity within the Unichain network.

The integration marks a major step forward for both Chainalysis and Unichain, potentially setting the stage for future collaborations in the DeFi space.

For more details, visit the Chainalysis blog.