Blockchain analysis company Chainalysis is on a mission to promote trust and transparency for cryptocurrencies. Aiding that undertaking today is an additional $13 million in funding to add to its Series B round.
The new investment comes from Ribbit Capital and Sound Ventures and brings Chainalysis’ Series B round to $49 million. The New York-based company’s total funding now stands at almost $67 million.
Chainalysis was founded in 2014 and was recently valued at $266 million, according to Pitchbook. Among its offerings are automated cryptocurrency transaction monitoring software, investigation software for tracing the flow of funds across blockchains, and profiles of cryptocurrency businesses.
As a part of the deal, Chainalysis has gained former Treasury Department official and current Ribbit Capital General Partner Sigal Mandelker as an advisor.
Mandelker and the new funds both play a key role as Chainalysis invests more into the government side of its business. While Chainalysis offers solutions for private sector businesses and financial institutions, the company also works with a handful of U.S. government agencies, including the IRS, the DEA, ICE, and the SEC.
In an interview with blockchain publication The Block, Chainalysis CEO and Co-founder Michael Gronager said, “We extended our Series B in order to meet demand for our services, primarily from government customers. Government agencies understand that visibility into cryptocurrency is important to national security and that crypto crime does not let up during a pandemic. Importantly, this also has long-term benefits to the cryptocurrency industry.”
As transactions move to the digital realm and more countries begin considering CBDCs, Chainalysis is making a smart move in pouring more resources into its government-focused services. Mandelker said she is “excited to work with the Chainalysis team to help develop public-private partnerships, enhance ground-breaking technologies in financial services, and root out illicit networks.”