- TRM Labs offers compliance and risk-management tools for finance companies as well as regulators.
- This month, JPMorgan announced a strategic investment in TRM Labs.
- TRM Labs CEO and cofounder said to Insider that the company’s business is growing in the company, and is not declining despite the economic recession.
- The article in question is part Rise of the Crypto Economy the series that examines how the cryptocurrency industry is shaping and creating new opportunities in the global economy.
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The current instability in the crypto market have seen billions of dollars wiped from the waters of the digital asset ecosystem. However, one company, TRM Labs, is experiencing increased interest in its back-end applications utilized by a wide range of people working across digital assets, despite or in response to the market’s shift.
TRM Labs cofounder and CEO Esteban Castano revealed to Insider the company that TRM Labs grew at its highest rate ever in the second quarter of 2018 -surpassing record growth earlier in the year. The company has raised over more than $80 million since it was founded in 2017. This includes an investment of $60 million in Series B in December of last year that included participation from the venture arm of big financial companies such as Citi, PayPal, and American Express. This in June TRM Labs announced it had completed the acquisition of the UK-based investigative blockchain training firm CSITech.
The company is based with its headquarters in San Francisco, TRM Labs is a San Francisco-based company that provides risk management, compliance and anti-fraud software to banks, financial companies and blockchain-related players as well as regulators too. TRM Labs has signed alliances with at minimum one major financial institution, JPMorgan — which has announced a strategic investment in TRM Labs this February -and includes Shopify as well as crypto-native giants such as Circle as well as FTX as customers.
For instance, payment businesses, in particular Shopify are embracing TRM Labs’ transaction monitoring tools to stop money laundering. Chainalysis another cryptocurrency compliance service within an ever-growing market has estimated that that over eight billion in crypto laundering in 2021.
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JPMorgan that has announced the launch an online branch within the metaverse in February doesn’t have to be the sole Wall Street bank to eye new offerings in digital assets this year.
Goldman Sachs has been top of the list of potential buyers who are interested in purchasing the assets of the distressed digital lenders Celsius, CoinDesk reported in on June. And in May, State Street teamed together along with Credit Suisse and another crypto-related business, Paxos, to develop a same-day stock settlement trial.
For banks that are increasingly partnering with crypto startups , or providing services to customers who have cryptocurrency funds, TRM Labs offers one very popular product known as “Know-Your-VASP” — or virtual asset service provider serve that exchange,” Castano stated.
TRM Lab’s technology is built on various blockchains with the most recent introduction of the blockchain-backed Ethereum platform Polygon. According to Castano the company’s founder, it develops its tools for compliance across three key domains: “One cup of raw blockchain data, one-half cup of threat intelligence, and another half cup of advanced analytics.” He describes TRM Labs’ services as like Google Maps which is a layer of information and tools for screening are layered over a flat layer of data.
