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Crypto risk assessment platform TRM Labs has reportedly raised more funds in its seed round 9to develop and expand its product. In a press release published on Nov. 19, the company said that it has now secured $4.9 million from investors, which was led by PayPal Ventures with participation from Y Combinator, Blockchain Capital, and Initialized Capital.
Earlier this year, TRM announced that it has acquired $1.7 million inits funding round where Blockchain Capital led the charge. The new wave of money brings the platform’s total funding amount to $5.9 million, a testament to the investors’ confidence in the project.
Founded in 2018, TRM is a platform that helps assess the risks that financial institutions face in the cryptocurrency industry so they can enter the space with mitigated exposure. Among the factors that TRM monitors are the provenance of customer funds, which can track down illicit actors that may be involved in money laundering activities.
TRM Labs' ultimate goal
TRM Labs co-founder and CEO Esteban Castaño said that PayPal’s involvement in the project provides more credibility to the very core of the platform. TRM is also offering support to financial firms that are interested in entering the crypto-verse but are in the dark about regulatory compliance surrounding the nascent industry. Ultimately, the goal is to offer financial institutions the tools needed to monitor and mitigate risks, which will result in a solid foundation for the protection of customer interests.
“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,” Castaño said.
TRM Labs joins more risk management platforms
As the financial industry has no choice but to embrace the crypto scene, businesses like TRM has been popping up left and right in an attempt to bring in more institutional players into the fold. Chainalysis, KYC (Know Your Customer), and Reactor are some that have already rolled out their services to the industry.
These businesses will play an important role in the crypto-verse moving forward as regulators and legislators try to create a sound regulatory framework for the industry. They’ll also be vital in identifying criminals operating in the crypto space, something that’s been a major concern among regulatory bodies.
