New York-based blockchain intelligence platform Chainalysis has recently raised $6 million in funding from Mitsubishi UFJ Financial Group (MUFG) and Sozo Ventures.
According to a Reuter’s report published on Tuesday, this strategic investment will help Chainalysis to expand its base in the Asian markets.
“We are looking into opening an office in Japan in the next year or so, but we don’t yet have a specific timeline,” Michael Gronager, chief executive officer of Chainalysis, told the publication.
The blockchain startup recently opened an office in London as a part of its global expansion push.
Founded in 2014, Chainalysis provides financial institutions, cryptocurrency exchanges, and law enforcement with a platform to detect and investigate cryptocurrency money laundering, fraud, and compliance violations.
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Commenting on the investment, Nobutake Suzuki, president and CEO of MUFG Innovation Partners, the venture capital arm of the Japanese financial group, told Reuters: “Chainalysis’ compliance technology is important to providing the insight and anti-money laundering controls banks need in order to establish next-generation compliance frameworks.”
Making pockets deep
Earlier this year, the New York-headquartered company closed a $30 million Series B funding round. According to Crunchbase, the startup has raised $16 million in 2018, after starting with $1.6 million in seed capital.
Chainalysis’ interesting client base has attracted both Japanese venture firms. The company claims that it has doubled its number of clients in the Asia Pacific region over the past year with a 16-fold jump in its contracted revenue.
Sozo Ventures earlier backed the United States’ leading cryptocurrency exchange Coinbase and, according to its website, Chainalysis is the 18th name in its investment portfolio.
The need for blockchain analysis services grew drastically over the years, especially with the overseas expansion of major crypto exchanges. Last month, Finance Magnates reported a partnership of Chinanalysis with Binance, one of the largest global crypto exchanges in terms of adjusted volume.