Traditional banks are moving further away from a zero-tolerance stance on Bitcoin (BTC) and cryptocurrency.
As bankers around the world investigate the rise of crypto, assessing how to interface with innovators and how to gain exposure to crypto, Wells Fargo, the fourth-largest bank in the United States with $503 billion in assets under management, has announced support for Elliptic, a leading provider of crypto asset risk management solutions for financial institutions. Wells Fargo Strategic Capital (WFSC) is investing $5 million in Elliptic’s Series B funding round which totals $28 million.
The WFSC investment will support Elliptic’s product Elliptic Discovery. The risk management tool helps banks navigate the wild west of crypto, steering compliant institutions clear of unregulated organizations and reducing the risk of exposure to exchange hacks and stolen funds.
According to the team at Elliptic,
“Purpose-built for banks, Elliptic Discovery provides compliance teams with the insights they need to identify flows of funds into and out of crypto-assets and assess the risk that they pose. Detailed profiles of over two hundred global crypto exchanges will enable them to manage risk, pursue new opportunities, and meet stringent regulatory requirements.”
With tumultuous episodes like the Mt. Gox meltdown, the Silk Road investigation, the Binance hack and several other high-profile security and compliance lapses linking cryptocurrencies to hackers, criminals and billions in tainted or stolen Bitcoin, Ethereum and other digital assets, industry leaders are developing tools that help distinguish blockchain technology from bad actors.
The goal is to support innovation while closing the types of loopholes that affiliate the industry with the darknet or terrorist financing. By producing advanced tools that provide auditable proof of identity for leading cryptocurrencies such as Bitcoin, Ethereum, Bitcoin Cash and Litecoin,