Chainalysis data service benefits from „increased interest“ in the crypto industry

The analysis of blockchain data is increasingly coming to the fore, especially due to the current hype surrounding the crypto industry.

Crypto data service Chainalysis has seen its company capital increase by $100 million through several investments, including a cash injection from Salesforce CEO Marc Benioff.

As per a CNBC report on Friday, Chainalysis CEO Michael Gronager attributed the Bitcoin Formula success of the matching funding round to „increased momentum“ in the crypto industry.

„Blockchain data service Chainalysis raised $100 million in a Series D funding round led by Paradigm, bringing the company’s valuation to more than $2 billion,“ according to the related press release on Friday. It added: „Previous investors such as Addition and Ribbit have increased their investments, while new investors such as TIME Ventures, Marc Benioff’s investment fund, have now joined.“

When asked by Cointelegraph what the investment capital will be used for, Chainalysis head of communications Maddie Kennedy explains that it is „to expand its service offering in data processing“. To this she adds:

„We will be investing in compliance and investigation software first and foremost, but we will also be developing new data products to appeal to both our existing customers and new customers.“

Chainalysis intends to focus more on crypto companies, asset managers, financial services providers, government agencies and similar customers.

Government agencies are increasingly seeking legal clarity and law enforcement in the crypto industry

Kennedy sees these increased regulatory efforts, which her data service can be an important aid in, as an important step in the adoption of the asset class:

„By working with government agencies, especially by clarifying the transparency of cryptocurrencies, cryptocurrencies have been able to establish themselves in the mainstream. Once regulators and law enforcement no longer have concerns, financial institutions and large corporations are daring to enter the market. We are excited to help make cryptocurrencies a legitimate part of the global financial system by working with our clients and private sector and government partners.“

In September 2020, Chainalysis had been awarded a $625,000 contract by the US Internal Revenue Service (IRS) to track transactions of the anonymous cryptocurrency Monero (XMR).