Crypto Detective Firm Chainalysis Raises $30 Million, Cites Growth of ‘Stablecoins’
Chainaysis has brought attention to themselves by helping law enforcement track criminals’ use of Bitcoin and other cryptos. As crypto has started to see more main stream adoption, the New York based form has developed a new type of business to help financial and investment firms stay on track as far as regulation, legal framework and positive view of the technology. With some of the FUD that has been spread out there, Bitcoin and crypto in general needs to have the air of legitimacy to ensure the positive view of the technology.
On Tuesday, Chainalysis announced it has raised a $30 million Series B round led by Accel to expand it’s operations to include it’s “Know Your Transaction” product, which helps financial institutions and cryptocurrency exchanges vet their customers. At this time, more than 100 financial institutions make use of this tool. With this funding, a London based office will serve as a center for R&D, with Philippe Botteri joining the company’s board of directors.
CEO Michael Gronager’s interview with Fortune said that revenue from law enforcement, making up 90% of the company’s business a year ago, now only makes up 40% with corporate clients comprising the rest. So we see their business changing and growing in a way that will ultimately make the company better positioned for growth, better enforcement and self policing of a new technology. This will also help the technology to grow and reach higher levels of acceptance and adoption. By enforcing standards and implementing a high level of regulation, this will help the industry to have a better appearance in complimentary genres of business and with the public as well. This will decrease the FUD that is currently encouraging stagnation in cryptocurrency.
Gronager has said that stablecoins have become a source of growth and momentum for the crypto industry. With the bear market and implosion of ICOs, due to pressure from the Securities and Exchange Commission, we have seen the rise of other avenues for the technology to grow.
Share the Video Version of this Story on Facebook
Thanks for your Support!
34281total visits,6visits today