Ripple-Backing SBI and Santander Fund Elliptic To Fuel Asian Expansion
Cryptocurrency compliance company Elliptic has raised $23 million in a Series B funding round led by SBI Holdings, a Japanese financial institution which has been trialing an XRP-powered store settlement payments app.
Another major enterprise participator in this funding is Santander, a UK bank that claimed to be the first introduce
blockchain technology for international payments, through Ripple, back in 2015.
Elliptic has said that it will be using the funding to drive blockchain adoption in Asia with new offices being opened in
Japan and Singapore. Asia is being targeted in this case because it is reported revenue from clients based in Asia has increased 10-time over the past twelve months.
Moreover, the funding will also be used to accelerate product development to support a new class of asset-backed cryptocurrencies. One of the key cryptocurrencies that Elliptic has in mind is Facebook’s Libra, but it is also looking at the growth and development of central bank digital currencies.
Elliptic’s core business involves the management of financial crime risk when dealing with cryptocurrencies where Elliptic screen billions of dollars in transactions to analyze them for links to illicit activity including money laundering, terrorist financing, sanctions evasion, and other financial crimes. This is an important aspect in the legitimization of cryptocurrencies for enterprises and banks who want to be a part of blockchain and crypto, but not with its nefarious stigma.
It is this new drive and adopting from major banks, enterprises, and even governments that are helping push the adoption of
cryptocurrency into a more mainstream space. Additionally, these major players are investing in blockchain-based businesses, such as Elliptic, in order to make the nascent technology more applicable and legitimate.
This funding is further evidence that the boundary between crypto-assets and traditional
finance is blurring, with major financial institutions continuing to invest in this space. It is also a great endorsement of Elliptic and what it has achieved over the past six years in helping crypto businesses and financial institutions to engage with crypto assets in an increasingly regulated environment.
“Having the likes of SBI Holdings and Santander Innoventures on board is critical as we increasingly work with mainstream financial service businesses,” Dr. James Smith, CEO, and Co-Founder of Elliptic, told me. “Their expertise and guidance will be invaluable as we continue to expand our offerings to meet the needs of financial institutions.
“The involvement of SBI Holdings and Santander Innoventures also provides further endorsement of our industry-leading compliance solutions, which are already used by financial institutions and crypto-asset businesses all over the world.”
“Most major financial institutions are actively exploring crypto-assets, with activities ranging from investments such as the one in Elliptic to offering crypto-asset services of their own. This is being driven by increased regulatory clarity, growing customer demand, and a realization that crypto-assets are nowhere to stay,” added Smith.