Sign of the times: Chainalysis raised $100 million last week for a $4.2 billion valuation, up from $2 billion in March 2021 just months after reaching unicorn status—here’s what’s driving those generous investments.
What does it do? Chainalysis provides data, software, and research to government agencies, exchanges, financial institutions (FIs), and insurance and cybersecurity companies in more than 50 countries to help them with cryptocurrency regulation compliance.
It will use the funds to expand its resources and data to cover more cryptocurrencies and focus on use cases like decentralized finance (DeFi).
What’s its appeal? Crypto compliance solutions are increasingly in demand as regulatory oversight ramps up and blockchain services become more complex.
Looking ahead: Chainalysis’ raise is one of many recent crypto mega-rounds, which may become even more prevalent in the future.
Peer-to-peer payments company Circle raised $440 million in May, and in March, crypto exchange BlockFi and crypto firm Blockchain.com scooped up $350 million and $300 million, respectively—to name a few.