JPMorgan Chase invests in crypto forensics startup Elliptic

abdelaziz Fathi

Multinational investment bank JPMorgan Chase & Co has joined the Series C funding round for Blockchain forensics startup Elliptic, the latest sign of how major banks are warming to cryptocurrencies.

Elliptic

Elliptic initially raised $60 million in the latest growth funding round led by high-profile investors. The fresh capital injection saw participation form Evolution Equity Partners and SoftBank’s VC arm. Existing investors such as Wells Fargo, SBI Group, Octopus Ventures, SignalFire, and Paladin Capital Group also joined the financing round.

The new investment, which brings the company’s total funding to over $100 million, will fuel Elliptic’s continuing expansion into Asia and elsewhere. The funding will also be used to accelerate product development to support an emerging class of asset-backed crypto-assets.

Elliptic’s flagship product helps banks to assess hundreds of crypto exchanges operating worldwide. Called ‘Elliptic Discovery,’ this solution is purpose-built for banks to enable them to identify crypto exchanges that are complying with strict regulatory standards. Discovery boasts a database of hundreds of exchanges, collected since 2013, including their owners, jurisdiction, regulatory status, and compliance policies.

JPMorgan Chase already gives its wealthy clients access to six cryptocurrency investment funds. However, it was not the only financial institution exploring the potential of cryptocurrency as part of its efforts to modernize their legacy investment vehicles.

Chainalysis doubled valuation to $8.6 billion

Simone Maini, Elliptic CEO, said: “As an asset class, crypto has grown by more than 10x over the last five years and is now worth more than $1 trillion. A potential further 10x of growth lies ahead — and will be driven by businesses keen to shape the future of finance. We are focused on enabling the opportunity to help organizations unlock the true value of crypto.

He added: “As more established financial institutions move into the sector, these companies need to understand when they can let transactions run — and when they should intervene. Stopping financial crime is not just a regulatory requirement but an ethical one, and a safe ecosystem is a healthy ecosystem.”

Elliptic had secured decent funding from major financial institutions over the last two years. Wells Fargo, the fourth-largest bank in the world, and Tokyo-based SBI Group led Elliptic’s Series B funding rounds in 2019 and 2020.

The London-based firm’s new investment is the latest sign of how major corporations are showing increased interest in the crypto data industry. Their major competitor, New York-based Chainalysis, also closed a $170 million financing round in March, doubling its valuation to over $8.6 billion.

Read this next

Industry News

Playtech to close Finalto sale to Gopher in two weeks

Playtech, the London-listed gambling software developer, today said it expects to close the divesting of its financial trading division Finalto by mid July 2022.

Retail FX

eToro valuation halved as SPAC merger deadline expires

The deadline for the completion of the SPAC merger of eToro had passed yesterday, June 30, and the Israeli broker apparently canceled the deal with Betsy Cohen-backed blank-check firm.

Institutional FX

FXSpotStream reports second best figure for monthly volumes

Trading volumes on institutional FX platforms surged in June after fears over the impact of Russia’s military invasion of Ukraine sent speculative asset classes reeling.

Retail FX

Vantage expands MT5 offering with access to new stocks

ASIC-regulated foreign exchange brokerage Vantage has expanded its service offering and trading products by incorporating new markets, namely 14 exchange-based stocks on MetaTrader 5.

Digital Assets

CFTC charges $1.7 billion Bitcoin scam, largest to date

Mirror Trading accepted at least 29,421 Bitcoin from approximately 23,000 investors from the United States and even more throughout the world.

Retail FX

Spotware Systems upgrades cTrader Desktop to version 4.3

Spotware Systems, a technology provider for the electronic trading industry, has launched an updated version of its cTrader Desktop, which adds new functionality to join a roster of advanced trading capabilities.

Digital Assets

OKX launches Block Trading for tighter pricing

With Block Trading, users can integrate spot and derivatives trades on the same platform and trade multiple currencies in a single trade. The service supports trading of perpetual swap, futures, and option contracts with popular altcoins as the underlying.

Industry News

Interactive Brokers pays $1 million to settle with CFTC

Interactive Brokers overcharged its customers a total of $710,828.14.

Metaverse Gaming NFT

DappRadar launches cross-chain token staking

The launch of the cross-chain token staking mechanism by DappRadar comes under a partnership with LayerZero protocol, which enables smart contracts to communicate across different chains.

<