Wells Fargo invests USD $ 5 Million to connect banks with exchanges
The total amount of investment in the Elliptic startup amounted to a total of USD $ 28 million
The investment division of the third largest bank in the US, Wells Fargo, invested USD $ 5 million in Series B of Elliptic, the startup specializing in connecting banks with exchanges, who promotes its services through the Elliptic Discovery product.
Tom Robinson, co-founder of Elliptic, told Coindesk that the product “really helps a bank to engage more closely with crypto exchanges.” The company’s services will allow “to adopt a risk-based approach and use our knowledge and data to identify those crypto exchanges with which they can do business safely.”
Elliptic Discovery has helped more than 200 crypto exchanges around the world. “Previously, a bank simply did not know much about the exchange that wanted to open an account with them”. But now, thanks to the initiative, interested banks will receive “information on how risky It’s a certain crypto exchange,” Robinson said.
For his part, Elliptic co-founder and CEO James Smith told CNBC that Wells Fargo’s support for the company shows banks’ interest in learning to understand and manage crypto-related risk.
“More and more financial institutions realize, even if they don’t play crypto themselves, they are adjacent to crypto. They are exposed to cryptographic risk and have a responsibility to understand it and how to handle it,” said Smith.