Cryptocurrency has stunned everyone with its massive growth. Therefore, companies are now eagerly willing to use it for the day to day transactions. Companies are already using cryptocurrency for several transactions. However, many companies are still reluctant to use it regularly because of the money-laundering fears that are supposed to be associated with the crypto industry. Has TRM Labs solved this problem?
The problem is that traditional banks aren’t ready to address this problem at this stage. Compliance startup TRM Labs, part of the YCombinator tech incubator, has stepped forward to promote crypto’s reputation among the traditional businesses. The best part is that top investors including Paypal are helping them with achieving their goals.
What’s the Goal of TRM Labs?
The investors are concerned about boosting the massive adoption of crypto within the next few years. Esteban Castaño, the CEO and Co-founder of TRM Labs, says that they are focused on eliminating the crypto-related risks so that the businesses may warmly welcome this change.
Crypto exchanges might also help with facilitating this process. Businesses are still unfamiliar with how Crypto can boost their growth in the future. And that’s what TRM Labs claims to achieve with its consistent efforts.
Talking about the Investors
Paypal Ventures, SF Stalwart Blockchain Capital, and Alexis Ohanian’s Initialized Capital are the top names that are financing this startup. TRM emerged out of Y Combinator at the beginning of this year. And they have raised a total of $5.9 million so far.
How TRM Labs is Helping Financial Institutions?
TRM LABs claims that it’s helping businesses with meeting regulatory requirements. The startup claims that it simplifying the customer due diligence to an extent so that the financial institutions may continue enjoying crypto-related transactions and partnerships without any fear.
TRM LABs states that it will monitor the transactions so that the businesses may not worry about fraud and money-laundering anymore.
Castaño says that the major players in traditional finance have now started realizing the exposure to crypto is now “inevitable”, therefore, they are now showing a great interest in using it for their daily transactions.
The TRM is concerned about helping the existing financial system so they may easily adapt to this new system. TRM isn’t the only player that is trying to serve the finance sector but there are other players like Chainalysis that are making things easier for financial institutions.
Blockchain Capital’s Spencer Bogart said that the existing providers have failed to fulfill the requirements of financial institutions. He further said that the existing players are trying their best to tailor products but they still need to make some improvements.
He mentioned that the major concerns of financial institutions are compliance and risk management.
According to Castaño, TRM Labs is a group of 20. The company’s representative has claimed that they are planning to use the new funding for hiring, product development, and expanding to new locations.
Seymour Nunez is a contributing writer for Cash Tech News who enjoys writing about the intersection of blockchain technology and everyday life.
The views and opinions expressed here are for informational purposes only, and should not be confused with professional financial advice. These opinions are solely those of the author and do not necessarily reflect the views of CashTechNews.com. Every investment and trade involves risk. You should conduct your own research, and contact your professional financial advisor before making any investment.
Corrections, feedback, and ideas should be submitted through the website contact form.