HomeNewsCryptocurrencyWells Fargo invests $5 million in blockchain analysis firm Elliptic

Wells Fargo invests $5 million in blockchain analysis firm Elliptic

Blockchain analysis firms are of great interest to a lot of agencies. Wells Fargo is now making a strategic investment in Elliptic to further advance this industry.

The Appeal of Blockchain Analysis

Major cryptocurrencies such as Bitcoin and Ethereum are public by default. This makes it difficult to perform illicit actions with the funds. However, there are ways to circumvent this “transparent” nature of these blockchains. Ranging from exchanges to mixing services, there are ways to obtain a degree of privacy. 

To ensure no illicit activities take place, blockchain analysis firms have begun popping up. Chainalysis is one of the biggest names in this new industry. Elliptic is another firm worth keeping an eye on. These companies specialize in ensuring cryptocurrencies aren’t used for illegal purposes.

Companies active in blockchain analysis attract a lot of attention. On the one hand, they make the cryptocurrency industry more legitimate. On the other hand, they can be valuable allies for financial and government institutions. It is not surprising to see banks like Wells Fargo take a keen interest in these companies.

Wells Fargo Invests in Elliptic

For many years, financial institutions have opposed cryptocurrencies. Some even went as far as claiming how Bitcoin is a pyramid scheme. It now appears that the mood regarding cryptocurrencies is changing completely. Banks are actively seeking involvement in this industry through a variety of ways.

For Wells Fargo, an investment in Elliptic is the next logical step. The bank has contributed $5 million to this blockchain analysis provider. In doing so, Elliptic’s Series B funding round now sits at $28 million. Other key investors include SBI Group and Santander InnoVentures. 

Elliptic CEO James Smith adds: 

“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.”

With financial support from one of the world’s biggest banks, the future looks bright for Elliptic. Following this funding round, the focus can shift to its new risk management product. That new tool is designed specifically for financial institutions globally. It seems likely to assume that Wells Fargo will benefit from this product.

JP Buntinx
JP Buntinx
JP Buntinx is passionate about cryptocurrencies, fintech, blockchain, and finance. He currently resides in Belgium.


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