United States, Nov. 19, 2020 /AlexaBlockchain/ – TRM Labs has raised US$4.2 million in funding from Initialized Capital, Blockchain Capital, PayPal Ventures, and Y Combinator, bringing the total raised fund in its seed round to US$5.9 million.
TRM Labs is a cryptocurrency compliance and risk management platform. TRM helps financial institutions prevent cryptocurrency fraud and money laundering, enabling them to meet regulatory requirements and embrace cryptocurrency-related products & partnerships.
Esteban Castaño, co-founder and CEO of TRM Labs, said:
“At TRM, we are fueled by a fundamental belief that cryptocurrency and blockchain can democratize access to financial services and empower billions of people. By building solutions to prevent cryptocurrency fraud and financial crime, we enable this vision and build a safer financial system for billions of people.”
The growth of cryptocurrencies is a global phenomenon and brings both opportunities and new risks to financial institutions. TRM is accelerating the safe adoption of crypto assets with its platform designed to help financial institutions monitor and mitigate these risks at scale. Compliance teams at financial institutions use TRM to risk-score their cryptocurrency-related transactions, customers, or partnerships, helping them to simplify customer due diligence and meet regulatory requirements.
TRM integrates with more than a dozen blockchains, and analyzes billions of virtual asset transactions to detect signs of fraud and financial crime like money laundering in real-time. TRM launched out of the startup accelerator Y Combinator this summer. Since then, it has delivered its cryptocurrency compliance and risk management solutions to global financial institutions including major banks, brokerages, and exchanges across US, Latin America, Asia, and Europe.
Rahul Raina, co-founder and CTO of TRM Labs, said:
“PayPal has been trusted by consumers for over 20 years because of its emphasis on fraud prevention and risk management. Their strategic investment in TRM signals their continued commitment to ensuring safety and compliance as the digital payments landscape evolves and innovates.”
Initialized Capital, early investors in Coinbase and Digit, also participated in this fundraise.
Garry Tan, co-founder and managing partner of Initialized, said:
“Illicit activity is an existential problem for crypto since it impacts the willingness of financial institutions, regulators, and consumers to embrace crypto. We can’t imagine more mission-oriented founders who can bridge the worlds of traditional finance, compliance, and crypto to tackle this critical problem.”
TRM Labs said that the new funding will be used to grow TRM’s engineering and data science teams, expand into new markets, and accelerate product development.
Spencer Bogart, General Partner at Blockchain Capital, said that the company’s solution is desperately needed by financial institutions.
“TRM provides a solution that every financial institution needs today because they are either establishing plans to directly engage with crypto or because they inevitably have customers or partnerships that are in some way exposed to cryptocurrency transactions.”Spencer Bogart, General Partner at Blockchain Capital