Blockchain intelligence firm Chainalysis has completed a key integration with X Layer, a zero-knowledge (ZK) Ethereum Layer 2 protocol built on Polygon’s technology stack. This development represents a notable expansion of Chainalysis’s blockchain monitoring and analytics capabilities, particularly in the context of emerging infrastructure within the Ethereum ecosystem.
With this integration, Chainalysis now supports X Layer across its full suite of products. These include Reactor, KYT (Know Your Transaction), Sentinel, Address Screening, and Data Solutions. This wide-ranging product support is intended to provide users with the analytical tools required to manage risks effectively within the rapidly evolving digital asset landscape.
Enhancing Asset Coverage and Risk Monitoring
One of the primary benefits introduced by this integration is automatic token support for new digital assets launched on the X Layer protocol. Chainalysis has extended compatibility to all fungible and non-fungible tokens that adhere to the ERC-20, ERC-721, and ERC-1155 standards. This expanded support allows users to analyze and monitor a broader spectrum of assets as they emerge on the Layer 2 platform.
Chainalysis has framed this move as part of its broader commitment to remaining responsive to new blockchain technologies and ecosystems. By offering analytics capabilities for X Layer, the company aims to provide clients with the necessary tools to address activity on the protocol from multiple analytical and compliance-driven perspectives. The integration is expected to significantly improve the efficiency and depth with which risks can be assessed in decentralized environments.
X Layer’s Strategic Position in Ethereum Scaling
X Layer is a zero-knowledge Ethereum Virtual Machine (zkEVM) Layer 2 chain developed by OKX in partnership with Polygon Labs. Designed to provide scalability and enhanced privacy, the protocol leverages zero-knowledge cryptographic proofs to process transactions more efficiently while ensuring the security guarantees of Ethereum.
We are excited to announce automatic token support for all fungible and non-fungible tokens on @xlayerofficial, a zero-knowledge Ethereum Layer 2 on Polygon, built by OKX in collaboration with Polygon Labs.
Our support enables complete workflows for investigations and compliance… pic.twitter.com/dlWvmz8ZqX
— Chainalysis (@chainalysis) June 30, 2025
The collaboration behind X Layer underscores its strategic importance in scaling Ethereum’s capacity. OKX, a leading global crypto exchange, and Polygon Labs, known for building Ethereum-compatible Layer 2 solutions, have positioned the protocol to play a crucial role in shaping the future of decentralized finance and Web3 infrastructure.
Chainalysis’s integration with X Layer reflects an alignment with this vision. By extending its support to this next-generation network, the analytics firm is enabling financial institutions, regulators, and Web3 platforms to maintain compliance, monitor asset movement, and detect illicit behavior even as blockchain technology evolves.
Strengthening Infrastructure for a Decentralized Future
As new protocols emerge to address the limitations of existing blockchain systems, companies like Chainalysis are focusing on equipping their clients with adaptable, future-ready solutions. The integration with X Layer not only broadens Chainalysis’s technical reach but also enhances its clients’ ability to navigate an increasingly modular and multi-layered crypto landscape.
This development reinforces the role of advanced analytics and monitoring tools in promoting security, compliance, and transparency as Layer 2 ecosystems continue to expand within Ethereum and beyond.
