Wells Fargo Strategic Capital (WFSC)), the venture unit of Wells Fargo, has invested $5m in British crypto risk management solutions provider Elliptic.
The infusion is part of Elliptic’s Series B fundraising, which has so far raked in over $28m.
Wells Fargo Strategic Capital managing director Basil Darwish said: “Since its inception in 2013, Elliptic has been a pioneer in developing a distinctive array of data sets and transaction monitoring tools.
“We are excited to invest in Elliptic and to help them execute the next phase of their business plan.”
Elliptic intends to use the fresh capital to strengthen resources to support the launch of Elliptic Discovery – a risk management solution for banks. The solution will be designed to identify the flow of funds into and out of cryptoassets and evaluate the risks involved.
The firm also intends to drive Asia expansion using the new funds.
Elliptic CEO James Smith said: “The partnership with our bank investors will further enhance our ability to better understand and work closely with financial institutions around the world to provide them with greater visibility into the cryptoasset ecosystem.
“Instead of leaving financial institutions in the dark regarding transactions in the emerging cryptoasset class, our aim is that Elliptic, working with financial institutions, will shine a light on any cryptoasset-linked transaction activity and enable them to manage risk accordingly.”
Elliptic facilitates illicit activity detection in digital currencies through its cryptoasset transaction monitoring and investigations software.
It has operations in London that acts as its base along with branches in New York, Singapore, and Tokyo.
Apart from Wells Fargo, the firm is backed by Japan’s SBI Group and Santander InnoVentures, among others.