The second day of Chainalysis Links NYC 2025 was a powerful testament to the crypto industry’s rapid evolution. With leaders from traditional finance (TradFi), law enforcement, blockchain innovators, and regulatory bodies sharing insights, the event painted a vivid picture of an ecosystem shifting from speculation to real-world execution. Themes like AI integration, regulatory progress, stablecoin adoption, tokenization, and public-private collaboration dominated discussions — all pointing toward a more mature, transparent, and resilient digital economy.
The Evolving Role of Stablecoins in Global Finance
Chainalysis CEO Jonathan Levin opened Day 2 with a pivotal conversation featuring Tether CEO Paolo Ardoino. The dialogue centered on stablecoins as critical infrastructure in the global financial system, especially in emerging markets where access to stable currencies is limited.
Ardoino emphasized Tether’s extensive compliance framework, noting partnerships with over 230 law enforcement agencies across 50 countries. “I don’t know any other financial institution that is so connected,” he said, underscoring the use of blockchain analytics tools like Chainalysis to monitor illicit activity across both primary and secondary markets.
Tether has taken proactive steps in criminal investigations, including supporting the U.S. Department of Justice in seizing funds linked to Hamas. “We’re not just waiting — we’re the ones notifying law enforcement,” Ardoino stated, reinforcing that transparency is central to their mission.
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He also highlighted blockchain’s immutable nature: “You cannot change history… all finance has to move to this layer.” Looking ahead, Tether is pursuing a dual strategy — expanding globally while exploring a U.S.-focused stablecoin. “There’s no one-size-fits-all product,” he noted, signaling a future where digital dollars serve diverse economic needs.
“We’re reinforcing the U.S. dollar’s role globally — and we’re ready for responsible oversight.” — Paolo Ardoino, Tether CEO
AI as a Force Multiplier in Crypto Security
Artificial intelligence is no longer a futuristic concept — it's actively reshaping crypto compliance and investigations. In a panel moderated by Chainalysis’ Danielle Davis, experts from AWS, Homeland Security Investigations (HSI), and Chainalysis explored how AI enhances security without replacing human judgment.
Jacob Illum, Chainalysis Chief Scientist, stressed that AI should be a partner, not a crutch: “AI isn’t coming for your job, it’s coming to your job.” This mindset shift is crucial as firms integrate machine learning into fraud detection, transaction monitoring, and user onboarding.
Darren McCormack of HSI shared how AI helps identify victims of child exploitation while reducing emotional strain on investigators. Meanwhile, John Liu from AWS explained how AI streamlines crypto onboarding to feel as seamless as using a credit card.
Despite its promise, challenges remain — including data quality, cost, and system observability. The consensus? Responsible AI adoption requires collaboration, transparency, and ethical guardrails.
“AI needs to be your partner—not your crutch.” — Jacob Illum, Chainalysis Chief Scientist
Strengthening Law Enforcement Through Public-Private Partnerships
Andrew Gould of the City of London Police joined Chainalysis’ Alex Cable to discuss the UK’s national strategy for combating crypto crime. From their first crypto seizure in 2015 — when they “didn’t even know where to store it” — to today’s coordinated cybercrime response, the UK has made significant strides.
Gould emphasized co-developing operations with private sector partners like Chainalysis. A new pilot program enables real-time intelligence sharing, helping trace funds, identify suspects, and recover assets. Recent operations have already uncovered tens of millions tied to dark net activity.
“This isn’t just about enforcement — it’s about identifying threats and recovering public money,” Gould said, calling for equitable access to investigative tools across local and national agencies.
“We have to democratize access to these capabilities — because although the crime is global, its impact is always felt locally.” — Andrew Gould, City of London Police
Major Exchanges Redefine Compliance as Competitive Advantage
Compliance is no longer a cost center — it’s a strategic differentiator. Representatives from Coinbase, Kraken, and OKX joined Chainalysis’ Caitlin Barnett to discuss how leading platforms are embedding compliance into product development.
Vanessa Zhang of OKX likened compliance to “mission control” — a proactive function ensuring safe innovation. Melissa Strait of Coinbase called blockchain analytics crypto’s “superpower” for building trust with regulators. CJ Rinaldi of Kraken noted that strong compliance drives customer trust and long-term business success.
All agreed: scalable, data-driven compliance programs with early integration into product design are essential for global growth.
“We’re not just responding to rules — we’re helping shape them.” — Melissa Strait, Chief Compliance Officer at Coinbase
👉 See how top exchanges maintain compliance while driving innovation in fast-moving markets.
Solana’s Vision for an Everything Chain
In a fireside chat with Chainalysis VP Emmanuel Marot, Solana Foundation President Lily Liu described Solana as “the everything chain” — supporting DeFi, gaming, stablecoins, and real-world assets (RWAs).
“Faster and cheaper is just the beginning of a ten-year journey,” Liu said, emphasizing performance as foundational for mass adoption. She envisions Solana complementing Bitcoin by enabling peer-to-peer financial systems accessible to anyone with internet access.
Stablecoins and tokenized equities are key use cases unlocking global liquidity and financial inclusion. “If you have internet access, you should have a bank account,” she stated.
FTX Collapse: Lessons from the Forefront of Crisis Recovery
The FTX downfall remains one of crypto’s most complex cases. FBI Acting Supervisory Agent Elizabeth Kudirka described it as “the fastest case I’ve ever worked — crypto speed.” A leaked balance sheet exposed Alameda Research’s overreliance on FTT tokens, triggering a collapse that saw $9 billion in customer funds misappropriated via fiat on-ramps.
Kudirka recounted heartbreaking victim stories, including a Ukrainian man who lost his family’s savings during wartime.
Kumanan Ramanathan of Alvarez & Marsal, overseeing the bankruptcy, called it “the most complex crypto restructuring in history.” With no proper accounting systems — just Slack messages and spreadsheets — tracing assets was chaotic but possible due to on-chain transparency.
“Without on-chain transparency, this process would have taken years, not months.” — Kumanan Ramanathan
TradFi Embraces Digital Assets Amid Regulatory Shifts
With the rescission of OCC Interpretive Letter 121, traditional finance is regaining momentum in digital asset innovation. Leaders from Fidelity, US Bank, and State Street agreed that regulatory clarity is unlocking stalled product development.
“We’ve moved from ‘this is scary’ to ‘this is innovation,’” said Erica Khalili of Lead Bank, capturing the industry’s growing confidence.
Combating Modern Piracy and Tax Crime with On-Chain Tools
Digital piracy now operates like a startup — complete with apps and crypto payments. Sky TV and the MPA revealed how piracy rings use stablecoins to launder millions. Investigators are fighting back using wallet tracing tools.
Similarly, tax authorities like HMRC and Brazil’s Receita Federal are leveraging blockchain forensics and AI to detect frauds worth billions.
“Crypto isn’t scary — it’s just data. Investigate it like anything else.” — Sam Bawtree, HMRC UK
Tokenization: From Pilots to Production
BNY Mellon, Franklin Templeton, and WisdomTree confirmed tokenization is now live at scale. From 24/7 yield on tokenized funds to programmable cash management, institutions are moving beyond pilots.
“The shift is no longer what if — it’s what’s next.” — Rajeev Sethi, BNY Mellon
Frequently Asked Questions
Q: What was the main theme of Chainalysis Links NYC 2025 Day 2?
A: The central theme was the crypto industry’s transition from experimentation to execution — marked by increased regulation, real-world adoption of tokenization, and stronger public-private collaboration.
Q: How are stablecoins being used beyond speculation?
A: Stablecoins are increasingly serving as tools for financial inclusion, cross-border payments, and accessing stable currencies in volatile economies — particularly in emerging markets.
Q: What role does AI play in crypto compliance?
A: AI enhances fraud detection, automates transaction monitoring, improves user onboarding, and supports investigators by processing vast datasets — but human oversight remains essential.
Q: Why was the FTX collapse significant for the industry?
A: It exposed critical gaps in governance and accounting but also demonstrated the power of blockchain transparency in recovering assets and holding bad actors accountable.
Q: How are traditional financial institutions responding to crypto now?
A: With clearer regulatory signals, banks like US Bank and State Street are accelerating digital asset custody and innovation initiatives once stalled by uncertainty.
Q: Is tokenization ready for mainstream finance?
A: Yes — major institutions are already deploying tokenized funds and digital cash solutions at scale, proving the technology is production-ready.
The road ahead is defined by progress. As crypto matures into critical financial infrastructure, collaboration between innovators and regulators will shape a safer, more inclusive global economy.