TRM Labs, a crypto compliance startup located in San Francisco, has recently been the benefactor of a seed round that brought in $1.7 million. The funding was supported by venture capital firm, Blockchain Capital, and was announced by TRM Labs on Thursday. Other investors include Tapas Capital, Green D Ventures, and The MBA Fund.
The startup was originally founded in 2017, functioning as a regulatory tech startup with goals of streamlining compliance within the crypto community. As the seed funding is allocated within the company, TRM will focus on the scalability of the engineering team and making progress the management platform for its token relationships.
TRM CEO and co-founder, Esteban Castaño, said,
“We believe that cryptocurrency is going to be a democratizing force in the world that lets anyone exchange value and access financial services. But to get there, we need to make it easier for everyone to be compliant.”
The token relationship management platform is the first of TRM’s products, making it easier for crypto companies to simplify the compliance efforts, following the necessary protocols for anti-money laundering. It also helps with transaction monitoring and managing relationships with customers. There will be other platforms to come from TRM, including platforms to apply big data and machine learning to suspicious activities. Optimally, this type of surveillance puts users at a lessened risk of money laundering and market manipulation.
Speaking on this new development, Spencer Bogart, a general partner with Blockchain Capital, said,
“The TRM team is very well suited to execute on this opportunity. The founders of TRM, Esteban Castaño and Rahul Raina, have deep experience across enterprise software, the blockchain, and product design. We think TRM can significantly accelerate crypto’s adoption by helping issuers and exchanges increase trust by being compliant on Day 1.”
Blockchain Capital frequently sets up funding to help invest in the crypto and blockchain community and has supported major projects like Coinbase, Ripple, Kraken, and Circle. Ripple even took to Parallel IV, their own venture fund, to contribute $25 million in XRP in April last year.
More recently, about three months ago, Blockchain Capital ran a Series A funding round for Securitize, bringing in $13 million. Securitize is a security token startup, and they are making it easier to tokenize security products, bringing them to the blockchain as well.