TRM Labs Raises $4.2M In Funding Led By PayPal Ventures

Cryptocurrency risk management platform TRM Labs announced that it has raised $4.2 million in funding from Initialized Capital, Blockchain Capital, PayPal Ventures, and Y Combinator. This round brings TRM’s total amount raised to $5.9 million.

Founded in 2018, TRM helps financial institutions across the US, Latin America, Asia and Europe to measure, monitor and mitigate their cryptocurrency risk exposure, enabling them to simplify customer due diligence and meet regulatory requirements. The new funding will be used to expand TRM’s engineering and data science teams, as well as move into new markets and boost product development.

“At TRM, we are fueled by a fundamental belief that cryptocurrency and blockchain can democratize access to financial services and empower billions of people,” Esteban Castaño, co-founder and CEO of TRM Labs, said in an emailed press release. “By building solutions to prevent cryptocurrency fraud and financial crime, we enable this vision and build a safer financial system for billions of people.”

TRM’s platform can analyze billions of transactions to detect signs of fraud and financial crime in real time.

“PayPal has been trusted by consumers for over 20 years because of its emphasis on fraud prevention and risk management,” said Rahul Raina, co-founder and chief technology officer of TRM Labs. “Their strategic investment in TRM signals their continued commitment to ensuring safety and compliance as the digital payments landscape evolves and innovates.”

“Illicit activity is an existential problem for crypto since it impacts the willingness of financial institutions, regulators, and consumers to embrace crypto,” added Garry Tan, co-founder and managing partner of Initialized. “We can’t imagine more mission-oriented founders who can bridge the worlds of traditional finance, compliance, and crypto to tackle this critical problem.”

And Spencer Bogart, General Partner at Blockchain Capital, explained that “TRM provides a solution that every financial institution needs today because they are either establishing plans to directly engage with crypto or because they inevitably have customers or partnerships that are in some way exposed to cryptocurrency transactions.”