Chainalysis, a provider of cryptocurrency compliance and investigation solutions, has secured a $30 million Series B financing led by Accel. Benchmark also increased its investment in the company after leading its $16 million Series A round last April. Accel’s investment was led by Amit Kumar and Philippe Botteri. Mr. Botteri will represent Accel on Chainalysis’s board of directors.
The company will use the funding to support strategic product development of new cryptocurrency usage and open an office in London that will act as a hub for its research and development lab and regional expansion.
Over the past year, Chainalysis has launched and deployed its real-time anti-money laundering and compliance software for cryptocurrencies, Chainalysis KYT (Know Your Transaction), and expanded its coverage beyond Bitcoin to include Ethereum, Litecoin, Bitcoin Cash, and stablecoins. More than 100 financial institutions and cryptocurrency exchanges, including Binance have signed up for Chainalysis KYT to automate the process of screening transactions and monitoring user activity.
“While other companies in our industry are pulling back, Chainalysis is investing in building foundational technology for the future of cryptocurrency,” said Michael Gronager, CEO and co-founder of Chainalysis. “We are focused on empowering new cryptocurrency use cases like stablecoins and supporting businesses and governments globally as cryptocurrency regulation becomes more defined.”
“Thanks to its deep crypto expertise and unique technology, Chainalysis has quickly become the industry benchmark for blockchain analysis and compliance technology,” Mr. Botteri added. “
The latest round of funding comes on the heels of Chainalysis’s annual report on crypto crime and launch of KYT for stablecoins– pegged cryptocurrencies designed to decrease volatility and appeal to a broader audience of users– that now have a total market cap north of $3 billion. With this solution, firms launching stablecoins will be equipped to monitor every transaction throughout their lifecycle, from issuance to redemption. Initial named clients within stablecoins include Paxos and TrustToken.
“Chainalysis has seen significant traction over the past year, and we believe there is a steep growth trajectory ahead,” said Sarah Tavel, general partner at Benchmark and Chainalysis board member. “We are doubling down on our conviction that the firm’s technology will build trust in the ecosystem and encourage greater participation in cryptocurrency markets.”
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