Up to 25% of high-risk stablecoin transactions may escape detection due to shortcomings in current blockchain compliance systems, a new study by MetaComp has revealed.
The Singapore-based digital finance firm, licensed by the Monetary Authority of Singapore, warns that gaps in on-chain monitoring tools could leave institutions exposed to undetected financial crime.
The research evaluated 7,000 live transactions involving USDT and USDC, two of the most widely used stablecoins across Ethereum and Tron networks. Using four leading Know-Your-Transaction (KYT) providers Chainalysis, Elliptic, Merkle Science, and Beosin MetaComp compared single-tool and multi-tool screening models. The results were clear: relying on only one or two tools allowed one in four risky transactions to go unnoticed.
1 in 4 Risky Transactions May Be Missed — MetaComp Study Finds Limited KYT Tools Insufficient for Blockchain Compliance https://t.co/nPAYDHuO9t #pr #pressrelease
— Press Releases (@press_newswire) July 17, 2025
To address this, the firm advocates a layered screening approach.
“For institutions operating in regulated environments, it’s no longer viable to rely on a single KYT provider,”
said Tin Pei Ling, Co-President of MetaComp.
“Layering tools significantly reduces blind spots and builds a more trusted digital finance ecosystem.”
Importantly, the study found that implementing a three-tool screening setup lowered the false negative rate to below 0.10%, while maintaining processing speeds under two seconds making it suitable for real-time compliance.
The analysis also exposed major threats, including connections to sanctioned wallets, stolen funds, darknet markets, and coin mixers. Notably, 6.95% of Tron-based transactions were flagged as severe risk compared to just 0.70% on Ethereum.
Further compounding the issue, MetaComp identified five industry-wide weaknesses: fragmented risk coverage, inconsistent categorization, lack of standardization, operational complexity, and processing delays in multi-tool environments.
In response, MetaComp has deployed a four-tool KYT infrastructure across its CAMP and StableX platforms, and urges other institutions to adopt at least three screening tools to maintain compliance without sacrificing performance.
Meanwhile, concerns over stablecoin reliability continue to mount. In its 2025 Annual Economic Report, the Bank for International Settlements (BIS) issued a warning, stating that stablecoins fail to meet the core principles of sound money singleness, elasticity, and integrity casting doubt on their long-term viability in the global financial system.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
