Payment processor PayPal has led a $4.2 million funding round for cryptocurrency risk management platform TRM Labs.

In a Nov. 19 press release TRM Labs announced that it secured $4.2 million in an investment round led by PayPal, with participation from other top investors including Initialized Capital, Blockchain Capital and Y Combinator.

Building solutions to prevent crypto fraud and financial crime

TRM, which was founded in 2018, aims to support financial institutions across the United States, Latin America, Asia and Europe by measuring, monitoring and mitigating their crypto risk exposure, meeting regulatory requirements and helping streamline their Anti-Money Laundering compliance.

TRM Labs CTO and co-founder Rahul Raina said that PayPal’s investment in the company shows “their continued commitment to ensuring safety and compliance as the digital payments landscape evolves and innovates."

TRM’s new funding brings their total amount raised to $5.9 million and will enable TRM to grow its engineering and data science teams, expand into new markets and accelerate product development. Esteban Castaño, co-founder and CEO of TRM Labs said:

"At TRM, we are fueled by a fundamental belief that cryptocurrency and blockchain can democratize access to financial services and empower billions of people. By building solutions to prevent cryptocurrency fraud and financial crime, we enable this vision and build a safer financial system for billions of people."

TRM secured $1.7 million from Blockchain Capital in January

TRM announced at the beginning of the year that it had closed a funding round totaling $1.7 million, led by U.S.-based investment firm Blockchain Capital. Tapas Capital, Green D Ventures and The MBA Fund. “Strategic angel investors” also reportedly participated in the round.