Traditional banks continue to move away from a zero-tolerance stance on Bitcoin (BTC) and cryptocurrency.
Wells Fargo, the fourth largest bank in the U.S. with $ 503 billion in assets under management, has announced Elliptic's support as bankers around the world investigate the rise of crypto and how they connect with innovators and how they can deal with crypto, a leading provider of crypto asset risk management solutions for financial institutions. Wells Fargo Strategic Capital (WFSC) is investing $ 5 million in the Elliptic Series B financing round, which is valued at $ 28 million.
The WFSC investment will support Elliptic's Elliptic Discovery product. The risk management tool helps banks find their way in the wild west of cryptography, keep compliant institutions away from unregulated organizations, and reduce the risk of being exposed to hacks and stolen funds.
According to the Elliptic team,
“Elliptic Discovery was developed specifically for banks and provides compliance teams with the insights they need to identify cash flows in and out of crypto assets and to assess the risk they pose. Detailed profiles of over two hundred global crypto exchanges enable them to manage risks, seize new opportunities and meet strict regulatory requirements. "
With turbulent episodes like the Mt.Gox meltdown, the Silk Road investigation, the Binance hack and several other high profile security and compliance bugs, the cryptocurrencies with hackers, criminals and billions in corrupt or stolen Bitcoin, Ethereum and other digital assets connect. Industry leaders are developing tools to differentiate blockchain technology from bad actors.
The aim is to support innovations while at the same time closing the gaps that connect the industry to darknet or terrorist financing. By creating advanced tools that provide verifiable proof of identity for leading cryptocurrencies like Bitcoin, Ethereum, Bitcoin Cash, and Litecoin, Elliptic plays a key role in legitimizing space and bridging the gap between older players and the crypto-based digital economy.
James SmithAccording to Elliptic's chief executive officer, the company enables banks to take a risk-based approach by highlighting their clients' crypto-asset activities.
“For too long, the lack of visibility of banks in the crypto asset ecosystem has led to zero tolerance for this emerging asset class. This has frustrated their customers while remaining blind to the actual risks that come from exposure to crypto assets. "
Supported by SBI Group, AlbionVC, SignalFire, Octopus Ventures, and Santander Innoventures, Elliptic addresses the gray area that has caused US President Donald Trump, US Treasury Secretary Steven Mnuchin and many other leading figures in the world Disparage cryptocurrencies as instruments that facilitate and promote crime. By demystifying crypto operators and complex transactions, the London-based blockchain forensics company is working to create a gateway through which older players can enter the room with confidence.
Elliptical Reports that analyze trillions in crypto transactions and uncover illegal money laundering, terrorist fundraising, fraud, and other financial crimes.
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