Crypto Startup TRM secures USD $1.7 Million Investment for Regulatory Compliance

Cryptocurrencies have entirely redefined the way our financial institutions work and think. However, there is a long way before some of the challenges associated with cryptocurrencies can be overcome.

Apart from security vulnerabilities and other issues related to technology, one of the biggest challenge crypto faces is that of compliance.

TRM, a San Francisco based RegTech startup, recently raised $1.7 million funds in investment seed round. The latest investment round was led by Blockchain Capital. The other participating investors are Tapas Capital, Green D Ventures, The MBA Fund, and other strategic angel investors.

TRM is planning on taking on the challenge of crypto compliance head-on. Though crypto allows startups to become a financial institution, the regulatory overheads to operate such a financial institution is huge. This is difficult to hire a 40-person legal and compliance team.

The company is working on a Token Relationship Management platform, with a legal team of about 40 people. The platform is designed to streamline the entire on-chain AML (Anti-Money Laundering) compliance process for companies based on digital assets.

TRM CEO and co-founder, Esteban Castaño, said, "We believe that cryptocurrency is going to be a democratizing force in the world that lets anyone exchange value and access financial services. But to get there, we need to make it easier for everyone to be compliant. Just as the Internet led to an explosion of new content, crypto is leading to an explosion of new financial products and markets. We need regulatory and compliance infrastructure that scales with this new world."


The TRM platform focuses on transaction monitoring, customer relationship management (CRM) and on-chain customer due diligence. This significantly reduces the risk and time associated.

However, the startup doesn't plan on stopping here. They are actively working on developing tools which will able to use Machine Learning to operate on millions of data points in order to prevent any fraudulent activities such as market manipulation and money laundering. Around 20,000 users utilized the TRM platform to verify ethereum addresses.

General Partner at Blockchain Capital, Spencer Bogart, said, "The TRM team is very well suited to execute on this opportunity. The founders of TRM, Esteban Castaño and Rahul Raina, have deep experience across enterprise software, the blockchain, and product design. We think TRM can significantly accelerate crypto's adoption by helping issuers and exchanges increase trust by being compliant on Day 1".

TRM Labs Inc. are one of the biggest identity networks on Ethereum. They are closely working with TrustToken's TrueUSD, a known stablecoin, to help them minimize the risks associated. TrustToken is using TRM to accurately segment core user groups and identify which exchanges and channels are driving growth.