Elliptic receives 5 million dollars from Wells Fargo
The Blockchain Forensic Firm Elliptic received 5 million dollars from Wells Fargo, the largest bank in the US as part of its series B financing round.
Elliptic reportedly received funding from Wells Fargo Strategic Capital (WFSC), an investment division of the bank. Wells Fargo has become the first US bank to invest in Elliptic.
According to the details, the new capital is destined for the newly launched product called Elliptic Discovery that helps cryptobags gain banking relationships.
The London-based forensic firm wants to obtain resources to sell its product. The product provides banks with the health chart of 200 encryption exchanges.
This allows banks to get an idea of how a cryptocurrency exchange performs customer knowledge checks (KYC) and if they are regulated.
Tom Robinson, co-founder and chief scientist of Elliptic, on Elliptic Discovery, stated:
“At this time, most banks cannot distinguish between compliant exchanges and those that pose money laundering risks or penalties. Elliptic Discovery will allow them to adopt a risk-based approach and use our knowledge and data to identify those encryption exchanges with which they can do business safely.
Wells Fargo's latest funds have raised the company's total B-series amount to $ 28 million.
As Crypto Economy reported, the company also raised 23 million in a fundraising campaign led by SBI Holdings, a group of Tokyo-based financial services companies, to boost its plans to expand its services to Asia. In total, the company has raised 40 million.
All the big banks, especially in the USA. In the US, they have been reluctant to do business with crypto exchanges due to the nature of cryptocurrencies and regulatory pressures.
But Wells Fargo has shown positive behavior towards virtual currencies.
The bank is also developing a stable currency linked to the dollar that will run on Wells Fargo's first distributed accounting technology (DLT) platform.
Cryptocurrencies are becoming increasingly popular, as is regulatory pressure.
Therefore, exchanges are implementing various compliance measures to easily manage their businesses.
That is why blockchain analysis companies such as Elliptic and Chainalysis are experiencing growth in their businesses as more and more encryption institutions are implementing their AML and its compliance solution.
As reported, the Zilliqa public blockchain platform also partnered with Elliptic to benefit from its world-class AML risk management and compliance tools.