Wells Fargo Invests $5M in Startup Connecting Crypto Exchanges and Banks

Wells Fargo Invests $5M in Startup Connecting Crypto Exchanges and Banks

Coinbase
February 13, 2020 by Bitcoin Report
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Banking big Wells Fargo is backing blockchain forensics agency Elliptic. Introduced Thursday, the contemporary $5 million from Wells Fargo Strategic Capital (WFSC) brings Elliptic’s Collection B as much as a complete of $28 million. The funding is partly geared towards a lately launched product that helps crypto exchanges win banking relationships, Elliptic mentioned. The product,
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Banking big Wells Fargo is backing blockchain forensics agency Elliptic.

Introduced Thursday, the contemporary $5 million from Wells Fargo Strategic Capital (WFSC) brings Elliptic’s Collection B as much as a complete of $28 million. The funding is partly geared towards a lately launched product that helps crypto exchanges win banking relationships, Elliptic mentioned.

The product, Elliptic Discovery, supplies a invoice of well being for over 200 crypto exchanges worldwide, masking every part from how they conduct know-your-customer (KYC) checks to whether or not they’re regulated within the first place.

“Beforehand, a financial institution simply did not know a lot concerning the change that was desirous to open an account with them,” Elliptic co-founder Tom Robinson advised CoinDesk. “It will give them insights into how dangerous or in any other case a given crypto change is.”

Virtually all large banks have averted crypto companies as a result of the perceived danger of coping with probably unsavory transactions was thought to outweigh the advantages. The job has been left to a handful of smaller monetary establishments, together with the U.S.-based Silvergate and Signature banks.

Serving to banks hook up with exchanges is a use case that is most likely underappreciated, mentioned Robinson. “Elliptic Discovery actually does assist a financial institution to interact extra carefully with crypto exchanges,” he mentioned.

Wells Fargo shouldn’t be the one financial institution to have taken an curiosity in Elliptic, however it’s the first one from the U.S. 

Final September, Japanese banking group SBI Holdings invested $10 million to assist drive Elliptic’s Asian growth plans. Different traders embrace Santander InnoVentures, SignalFire, AlbionVC and Octopus Ventures.

“We’re excited to put money into Elliptic and to assist them execute the subsequent section of their marketing strategy,” mentioned Basil Darwish, managing director for strategic investments at Wells Fargo, in a press release. 

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