Chainalysis Announces Expansion of Series B to $49 Million

Home » FinTech » Cryptocurrencies » Chainalysis Announces Expansion of Series B to $49 Million

Chainalysis Announces Expansion of Series B to $49 Million

The blockchain analysis company cleverly named Chainalysis has just upped its latest funding effort. Originally announced last year as a $36 million round with participation from Accel, Benchmark, MUFG, and Sozo Ventures, Chainalysis has now expanded the Series B by $13 million. The additional investments come from Ribbit Capital and Sound Ventures. As part of the deal, Ribbit Capital General Partner (and former Under Secretary for Terrorism and Financial Intelligence at the U.S. Department of the Treasury) Sigal Mandelker will serve as an advisor to the firm. With the newfound funds, Chainalysis says it will continue to “further unite the public and private sectors to fuel the cryptocurrency industry’s growth through the addition of software engineers, government sales, and other business roles.”

Chainalysis offers a number of products revolving around blockchain technologies and data. For example, their KYT (Know Your Transaction) offers automated cryptocurrency transaction monitoring while Kryptos provides risk analysis for crypto businesses. According to the company, 180 private sector businesses located in 44 countries currently utilize these services.

Elsewhere Chainalysis has gained some notoriety for some of their reports. Among them was the revelation that as much as $2.8 billion in Bitcoin was laundered throughout 2019. In particular, this report raised the ire of two companies singled out in it: Binance and Huobi — although Chainalysis did make clear that the laundering transactions still amounted to a small fraction of the trade volume seen on both platforms.

In a press release about the latest funding, Chainalysis co-founder and CEO Michael Gronager stated, “Chainalysis is founded on the belief that providing data insights into cryptocurrency activity will unite government agencies, exchanges, and financial institutions to fuel the industry’s growth.” He added, “Ribbit Capital’s deep FinTech, cryptocurrency, and government experience and Sound Venture’s commitment to creating safer digital environments through enterprise software make them natural partners as we continue our high-growth trajectory and global expansion.” Addtionally, Ribbit Capital managing partner Micky Malka said of his firm’s investment, “Chainalysis is the data platform bet, as crypto-asset adoption increases across the world. We’re convinced that the firm’s technology provides foundational infrastructure for the future of finance. Chainalysis has already seen impressive growth, and the economic opportunity is massive.”

Although more important matters have occupied the news in recent months, the cryptocurrency market hasn’t faded during the current crisis. In fact, as governments and citizens look toward establishing the new normal, there are plenty of reasons to think that blockchain and crypto will be even larger topics of conversation. However, looking at where we left off, it’s clear that regulators still have plenty of concerns about these technologies. Therefore, if Chainalysis can help calm those fears to any degree, it’s easy to see why their latest funding round has grown larger. With this still only being a Series B, it seems we’ll be hearing a lot more from the firm in the years ahead.

Comments

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Author

Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Cryptocurrency Exchange IDEX Announces $2.5 Million Seed Round

Just as the FinTech market has been ripe for investment even throughout the pandemic, cryptocurrency-centric startups have also gotten a fair share of attention. Among some recent fundraising efforts are DeFi's $1 million seed round, Chainalysis' $49 million Series B, and the more than $15 million in investments that Celsius...

Top 10 Personal Finance Articles of the Month — July 2020

It’s time again for one of my favorite features here on Dyer News: a look at the top 10 personal finance articles of the month. First, dive into some tips for saving money (or at least not spending as much). Then, we'll look at two interesting posts regarding the very...

Household Debt in the U.S. Dips For the First Time in Six Years

Those looking for a silver lining to the current pandemic may have found one in a new report. According to the Federal Reserve Bank of New York, total household debt — which includes both housing and non-housing debt — came in at $14.27 trillion for the second quarter of the year....