DARPA will fund Inca Digital’s research in a project that is expected to lead to an analytics tool that will map crypto’s impact and threats to US national security.
The Defense Advanced Research Projects Agency (DARPA), a research and innovation agency at the United States Department of Defense, has contracted crypto intelligence and analytics firm Inca Digital to map the potential impact of digital assets on national security.
DARPA contracts Inca Digital for crypto project
On Friday, Inca Digital revealed that DARPA, through Inca Digital Federal, the government contractor of the crypto company, had awarded it a contract to research and develop crypto analysis and visualization tools to map various implications of crypto financial applications.
In particular, the agency’s collaboration with Inca Digital will take place through a Phase II Research on innovation in small businesses (SBIR) contract, according to the announcement, and will help the company DARPA develop a “first-of-its-kind” crypto mapping tool.
The advanced analytics tool will then be leveraged to analyze and understand crypto financing dynamics and potential threats to national security.
“Digital asset markets are promising but also face money laundering, market manipulation and state actors that could pose a risk to US national securitysaid Adam Zarazinski, the Chief Executive Officer of Inca Digital.
DARPA, other US government agencies and commercial companies will use Inca Digital’s data analytics to, among other things, understand how blockchain-based technologies are linked to illegal activities such as money laundering, sanction evasion and terrorist financing.
The tool will also help various regulatory groups and companies understand money flows within the crypto ecosystem.
“Given the increasing prevalence of digital assets, the Department of Defense and other federal agencies need to have better tools to understand how digital assets work and how to leverage their jurisdiction over digital asset markets globallyZarazinski added.
DARPA will fund the project dubbed “Mapping the Impact of Digital Financial Assets.”