Good news for Elliptic as popular bank Wells Fargo announces a major financial investment.
According to the announcement, Wells Fargo’s venture division will be giving out an investment of $5 million to Elliptic. Elliptic is a startup dedicated to providing crypto risk management solutions.
Elliptic has been carrying out a series B financing round to improve its services of providing effective risk management solutions. This investment by Wells Fargo finalizes its Series B financing round to about $23 million. With SBI Holdings Inc. serving as one of Elliptic’s major financiers during the series. One of the risk management start-up goals is to build and improve its newest invention “Elliptic Discovery”. While also broadening its scope in Asia. Allowing banks to keep close tabs on their customer crypto habit and to decipher how much risk is involved.
James Smith, CEO of Elliptic, disclosed that the startup was pleased by the investment. Also adding that the partnership will facilitate seamless interaction with banks all over the world. Fostering understanding while providing better insight into the crypto asset space.
Smith added that it is his wish that everyone and every sector is actively involved with the crypto space. Hence his reason for Elliptic, as it is specially designed to include banks and other financial houses. Working with Elliptic will help banks easily foresee and prevent any form of risks linked to crypto usage.
MD of Wells Fargo, Basil Darwish also commented on the investment. Pointing out this his firm was glad to support Elliptic Series B financing round. Adding that they look forward to assisting Elliptic to achieve its proposed business.
Founded in 2013, Elliptic stands out in the crypto space. With its distinctive array of data and transaction monitoring tools.
Crypto regulation – A big issue
Proper and effective regulation of the crypto space is a major issue right now. According to reports, poor regulation is one of the drawbacks of crypto institutional investors. Andrew Yang, POTUS aspirant also disclosed that current crypto regulations are inadequate and ineffective. Investors and users are left to integrate safer means of trading crypto. Leaving institutions and banks with no choice but to stay away from cryptocurrency. Elliptic looking to remedy this has developed the first-ever software for tracking illegal crypto trades.
Institutions are also beginning to understand how important the crypto industry is. They can no longer turn a blind eye to this blossoming technology. They also understand there are risks involved and are therefore searching out ways to cancel out such risks.
Smith, however, pointed out that creating a favorable yet properly regulated environment for cryptocurrencies is the best course of action. Calling on regulatory bodies like the FATF, SEC, etc to revamp their regulatory guidelines
Adding that “It’s no longer OK for a bank to stick their head in the sand and pretend it doesn’t exist […]. Crypto is here to stay and whether or not you want to participate in it, some of your customers will be.”