PayPal has reinvested in crypto compliance platform TRM Labs as part the fintech’s $14m Series A funding round.

Bessemer led the round, which included participation from PayPal Ventures, Initialized Capital, Jump Capital, Salesforce Ventures, Operator Partners, Blockchain Capital, and executives from Google. Other existing investors include Y Combinator, Alumni Ventures Group, The MBA Fund, Tapas Capital, SGH Capital.

TRM’s platform works by integrating with blockchains and analysing virtual asset transactions to detect in real-time signs of fraud and financial crime like money laundering.

Ethan Kurzweil, partner at Bessemer Venture Partners, said: “The team at TRM Labs is building an extraordinary company that is going to be critically important in helping financial institutions safely transition to a new financial system for the digital age.

“TRM will also continue to be a strong partner to governments and regulators around the globe as they work to ensure that illicit actors don’t take advantage of this new financial system.”

Adding to this, Esteban Castaño, co-founder and CEO of TRM Labs, said: We are thrilled to have the team at Bessemer lead our Series A and support that mission. This partnership is exactly what TRM needs to continue to invest in our clients in an industry characterised by explosive growth.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Crypto compliance

The announcement comes as the crypto sector is experiencing tougher regulations due to its volatile nature. In May 2021, China banned any financial institutions from performing cryptocurrency transactions. And in the UK, retail banks suspended any transactions towards exchange platforms out of fear of financial crimes.

Additionally, as cryptocurrencies are becoming increasingly popular, banks and financial institutions across the globe are looking to invest in crypto compliance platforms to minimise the risks.

In the last year, TRM has driven 600% revenue growth and has doubled its headcount.

Peter Sanborn, managing partner at PayPal Ventures, said: “The team at TRM has built the next generation in blockchain intelligence software. TRM is the trust layer necessary for cryptocurrency to realise its full potential to make financial services more affordable, convenient and secure.

“TRM Labs serves as a critical piece of infrastructure to build a safe and accessible new financial system.”