Crypto consulting for financial institutions offered by TRM Labs

Crypto consulting for financial institutions offered by TRM Labs

The crypto consulting start-up TRM Labs has become the second blockchain company to receive funding from PayPal. The main activity of TRM Labs is to help financial institutions select partners from the crypto industry that meet the legal criteria.

TRM Labs offers analysis services on money laundering prevention measures implemented by crypto companies to help financial institutions choose the right partners and collaborators.

“Many may think this is the boring part of the financial system, but it is what allows the adoption of cryptocurrencies to increase,”

said TRM Labs co-founder and CEO Esteban Castaño in an interview.

“Financial institutions use TRM to evaluate the risks associated with cryptocurrency transactions, customers or partnerships. We help them simplify due diligence processes and meet regulatory requirements ”,

the company said in a statement.

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The start-up analyzes existing blockchains, verifying billions of transactions for signs of fraud and money laundering.

Project funded by Blockchain Capital, PayPal Ventures and Initialized Capital

Competitive firms such as Chainalysis and Elliptic help law enforcement agencies. TRM Labs focuses on compliance in the field of finance.

“Existing suppliers are trying to adapt their products to financial institutions and only what we find is not doing a good job in this regard”,

said Spencer Bogart of Blockchain Capital.

“Whenever we talk to financial institutions, the number one or two priority is respecting and managing risks”,

Bogart said.

TRM Labs crypto consulting

TRM Labs received total funding of $ 4.2 million to help financial companies deal with cryptocurrencies. They ensure that the existing rules are respected and that the funds of the clients are tracked.

The new financing round was obtained from Blockchain Capital and Initialized Capital, the investment firm of Reddit founder Alexis Ohanian.

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Another investor is PayPal Ventures, in what is the second foray into the payments giant in the blockchain industry. In April 2019, they also supported the Cambridge blockchain analysis company.

It is interesting to note that these PayPal investments focus on the relationship between traditional and cryptocurrency finance. The payment processor recently withdrew from the Libra Association because of the authorities’ negative attitude towards the stable cryptocurrency proposed by Facebook.

The increased interest of important players in traditional finance comes from the fact that exposure to crypto is now “inevitable”, said Castaño.

“A new world is being built,” he said. “We will help the existing financial system to adapt to this evolution, so that it can be effectively involved in it.”

The 20-person start-up in San Francisco will use the new funding to expand its business.