PayPal joins $4.2m funding round for crypto start-up
Banking compliance start-up also has Reddit's founder among investors
PayPal's venture capital arm has invested in TRM Labs, a crypto banking compliance platform that recently came out of start-up accelerator Y Combinator.
According to a press release, the start-up secured $4.2m (£3.2m, €3.7m) in its seed funding round, with the total amount raised reaching $5.9m. The list of investors, apart from PayPal, included Reddit founder Alexis Ohanian’s Initialized Capital, Blockchain Capital and Y Combinator.
This summer TRM has graduated from Y Combinator, one of the major accelerators that contributed to the launch of Stripe and Airbnb. As of October 2019, the cumulative value of the top Y Combinator companies surpassed $155bn.
The main goal of TRM is to build a solution to prevent crypto fraud and financial crimes, thus accelerating the adoption of crypto assets. TRM's platform will reportedly help financial institutions, such as banks, brokerages and exchanges, trace crypto transactions and easily detect fraud and money laundering in real time.
PayPal is now dipping its toes in crypto investments. The first was made in April 2019, when the online payments giant joined Series A funding round by Cambridge Blockchain, a start-up that develops shared ledgers for financial institutions.
PayPal was also involved in Libra, a crypto project launched by Facebook. However, the payment provider later withdrew from Libra due to regulatory uncertainty.
FURTHER READING: PayPal withdraws from the Libra Association