Traditional banks are moving further and further away from a zero tolerance position towards Bitcoin (BTC) and crypto currency. Interesting are also the developments in the area of new laws which are to be launched soon.
While bankers around the world are investigating the rise of crypto to assess how to contact innovators and how to become familiar with crypto, Wells Fargo, the fourth largest bank in the United States with $503 billion in assets under management, has announced its 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 financing round, which totals $28 million.
Risk management tool helps bank cryptography
The WFSC investment will support Elliptic’s Elliptic Discovery product. The risk management tool helps banks navigate the wild west of cryptography by keeping compliant institutions away from unregulated organizations and reducing the risk of stock market hacks and stolen funds. Elliptic executes (freely translated):
“Elliptic Discovery was developed specifically for banks and provides compliance teams with the insight they need to identify money flows into and out of cryptic assets and assess the associated risk. Detailed profiles of more than two hundred global crypto exchanges enable them to manage risk, pursue new opportunities and comply with stringent regulatory requirements.”
In the face of turbulent episodes such as the Mt. Gox hack, Silk Road investigation, the Binance hack, and several other high-profile security and compliance breaches that link crypto currencies to hackers, criminals, and billions in tainted or stolen Bitcoin, Ethereum, and other digital assets, industry leaders are developing tools that help distinguish block-chain technology from bad players.
The goal is to support innovation while closing the types of loopholes that link the industry to darkness or terrorist financing. By producing advanced tools that provide verifiable proof of identity for leading crypto-currencies such as Bitcoin, Ethereum, Bitcoin Cash and Litecoin, Elliptic plays a key role in legitimizing space and bridging the gap between the old players and the crypto-driven digital economy.
James Smith, Elliptic’s Chief Executive Officer, said the company enables banks to take a risk-based approach by highlighting the crypto-asset activity of their clients.
“For too long, banks’ lack of insight into the crypto-asset ecosystem has resulted in zero tolerance for this emerging asset class. This has frustrated their customers while they have remained blind to the real risks associated with their crypto-asset exposure.”
Elliptic’s report analyses trillions of crypto transactions and uncovers illegal transfers related to money laundering, terrorist fundraising, fraud and other financial crimes.