Bonanza Factory to Supply Shinhan Bank With Real-Time Crypto Wallet Risk Analysis Tool

Bonanza Factory will supply Shinhan Bank with a real-time blockchain wallet risk analysis solution, as banks ramp up efforts to track on-chain fund flows and strengthen internal controls amid growth in the cryptocurrency and stablecoin markets.

Bonanza Factory said on May 7 that it signed a software agreement with Shinhan Bank covering internal controls for cryptocurrencies and stablecoins, and will provide its Know Your Transaction, or KYT, solution, TranSight.

TranSight analyzes blockchain wallet risk in real time. The company said it has built proprietary databases covering high-risk addresses, identified virtual asset service provider, or VASP, addresses, VASPs not registered with the Financial Intelligence Unit, and addresses linked to domestic crimes. The system also incorporates Korea-specific crime-tracking data secured through state-backed research partnerships with investigative agencies including the National Police Agency.

The product was designed to integrate with banks' existing anti-money laundering, or AML, and fraud detection system, or FDS, platforms. Bonanza Factory said that would let banks move beyond relying on exchange monitoring systems and directly trace and analyze on-chain transaction flows.

Demand for KYT solutions is growing in the banking industry as financial authorities have continued to call for tighter internal controls tied to virtual assets since the Act on Reporting and Using Specified Financial Transaction Information took effect. The need to track on-chain fund flows has become more pressing as more financial companies review the issuance and operation of stablecoins.

Bonanza Factory said at least two more banks are seeking to adopt TranSight this year after the Shinhan Bank contract. The company also supplies the solution to major domestic cryptocurrency exchanges and is participating in efforts to build systems to trace and block criminal funds in the virtual-asset market.

Chief Executive Officer Kim Young-seok said banks now need to monitor on-chain risk directly as criminal fund flows using virtual assets grow more complex. He added that Bonanza Factory will continue upgrading TranSight to help strengthen the financial industry's crypto compliance capabilities in South Korea.