PayPal has joined a $4.2 million funding round for cryptocurrency compliance and risk management platform TRM Labs.
PayPal Ventures was joined by Initialized Capital, Blockchain Capital, and Y Combinator as investors, bringing the total raised in TRM's seed round to $5.9 million.
The startup aims to help financial institutions embrace the opportunities associated with cryptocurrencies by mitigating the risks.
It integrates with more than a dozen blockchains, and analyses billions of virtual asset transactions to detect signs of fraud and financial crime like money laundering in real-time.
Launched out of the Y Combinator accelerator just last year, TRM says it has already delivered its technology to banks, brokerages, and exchanges across the US, Latin America, Asia, and Europe.
The funding will be used to make engineering and data science hires, as well as to expand into new markets and accelerate product development.
Esteban Castaño, CEO, TRM Labs, says: "At TRM, we are fueled by a fundamental belief that cryptocurrency and blockchain can democratize access to financial services and empower billions of people.
"By building solutions to prevent cryptocurrency fraud and financial crime, we enable this vision and build a safer financial system for billions of people."