TRM Labs, a San Francisco, CA-based cryptocurrency risk management platform, raised $4.2m in funding.
Backers included Initialized Capital, Blockchain Capital, PayPal Ventures and Y Combinator.
The company, which brings total funding raised to date in its seed round to $5.9m, intends to use the funds to grow its engineering and data science teams, expand into new markets, and accelerate product development.
Co-founded in 2018 by Esteban Castaño and Rahul Raina, TRM provides financial institutions with solutions to measure, monitor, and mitigate their cryptocurrency risk exposure so they can safely embrace cryptocurrency-related transactions, products, and partnerships. The risk management platform includes solutions for cryptocurrency KYC/AML, entity risk scoring, transaction monitoring, threat intelligence, and wallet screening. Financial institutions use TRM to monitor and mitigate their direct and indirect risk exposure to cryptocurrencies.
The company 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.