Blockchain RegTech startup TRM Labs raises $1.7 million

Source: TRM Labs

TRM is a RegTech startup addressing one of the biggest challenges facing the cryptocurrency industry today: compliance.

TRM's RegTech solution is the first offering in its Token Relationship Management platform.

Current financial institutions require enormous regulatory overhead to operate. Crypto makes it possible for any startup to become a financial institution. But not any startup can afford to hire a 40-person legal and compliance team.

TRM built the first platform designed specifically to streamline on-chain AML compliance for digital asset companies, saving them time and reducing risk. The TRM platform includes solutions for on-chain customer due diligence, transaction monitoring, and customer relationship management.

"We believe that cryptocurrency is going to be a democratizing force in the world that lets anyone exchange value and access financial services. But to get there, we need to make it easier for everyone to be compliant," said TRM CEO and co-founder Esteban Castaño. "Just as the Internet led to an explosion of new content, crypto is leading to an explosion of new financial products and markets. We need regulatory and compliance infrastructure that scales with this new world."

TRM is also building tools that use machine learning and millions of data points to automatically detect suspicious activity like money laundering and market manipulation. Over 20,000 individuals have verified their Ethereum address on TRM's platform, making it one of the largest identity networks on Ethereum.

TRM recently rolled out its analytics solution globally with TrustToken's TrueUSD, one of the largest fiat-backed stablecoins, to help TrustToken better drive growth and mitigate risks. TrustToken is using TRM to accurately segment core user groups and identify which exchanges and channels are driving growth.

"The TRM team is very well suited to execute on this opportunity. The founders of TRM, Esteban Castaño and Rahul Raina, have deep experience across enterprise software, blockchain, and product design. We think TRM can significantly accelerate crypto's adoption by helping issuers and exchanges increase trust by being compliant on Day 1," said Spencer Bogart, General Partner at Blockchain Capital.

TRM Labs Inc., a San Francisco-based company, has raised a $1.7M seed round led by Blockchain Capital with participation from Tapas Capital, Green D Ventures, The MBA Fund, and strategic angel investors. TRM will use the funds to scale its engineering talent and expand the capabilities of its platform.
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