TRM Labs - Why We Invested

We are excited to deepen our partnership with CEO / Co-founder Esteban Castano, CTO / Co-founder Rahul Raina, and the rest of the talented team at TRM Labs through our participation in the company’s recent $70mm Series B expansion. At Brevan Howard Digital, our team is deeply familiar with TRM Labs and its team from using their product and evaluating competitive offerings at Brevan Howard Digital and previous firms. We are a satisfied customer of TRM Labs and have experienced the breadth and depth of use cases covered by TRM Labs significantly expand over time.

As the wave of web3 technology adoption continues to wash across various industries, we expect a broad range of companies across the globe will look to TRM Labs to understand blockchain activity and maintain compliance with multiple laws and regulations. Through continual product enhancements and strategic hiring, TRM Labs has established itself as a clear leader in the blockchain analytics and risk management space, which is of the utmost importance in today’s environment.

An Industry Leading Product

TRM Labs sells software that allows companies, financial institutions, and government entities to analyze activity on blockchains. The service enables their clients to fight various types of fraud, prevent money laundering, maintain compliance with continually evolving regulations, and manage the risks of participating in the crypto markets. TRM Labs does this by analyzing data across 23 blockchains (including NFTs and DeFi protocols) and utilizing machine learning-driven behavioral analysis to identify hidden patterns within blockchain data that can be matched to a comprehensive set of risk categories.

An Immense Opportunity

TRM Labs has gained significant traction since launching in 2018 across three primary verticals: financial institutions, the public sector, and crypto businesses. Each of these verticals has the potential for exponential growth in the coming years. We are particularly excited about increasing usage by financial institutions seeking to enter the crypto space while operating within their risk management and regulatory compliance frameworks, and by public sector clients seeking to detect, investigate, and prevent crypto-related fraud and financial crime. TRM Labs has developed a reputation as a leader in understanding major events in the web3 ecosystem and investigating hacks/vulnerabilities and resulting fund flows. They have earned this reputation by delivering a high-quality product to their customers, continually publishing high-quality and reliable research, and onboarding experts from leading private sector companies and law enforcement agencies worldwide.

We anticipate TRM will continue to establish itself as the leading blockchain intelligence firm and for blockchain intelligence to become a significant part of the 2026 forecasted[1] ~$46bn traditional global fraud detection and prevention market. We also anticipate that the increasing use of blockchains and the resulting ability to analyze public blockchain data will significantly accelerate this market’s growth and ultimate size. We are thrilled to be investors in TRM Labs and look forward to helping them continue to bring safety and trust into the web3 ecosystem.

[1] Global Fraud Detection and Prevention Market to Reach $46.4 Billion by 2026

*Any investments or portfolio companies mentioned, referred to, or described on this page are not representative of all investments in investment funds managed by Brevan Howard and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results. A full list of investments that are publicly disclosed or not subject to confidentiality restrictions are available on request. This list of investments is updated periodically and as such may not reflect most recent investments. No assumptions should be made that any investments identified here were or will be profitable. It should not be assumed that recommendations in the future will be profitable or equal the performance of the company(ies) identified. Past performance is not indicative of future results.

Certain information contained in this blog post constitutes “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “target,” “project,” “estimate,” “intend,” “continue” or “believe,” or the negatives thereof or other variations thereon or comparable terminology. Any such estimates or projections are based upon forecasts and reflects prevailing conditions, assumptions and our best judgment as of the date of this blog post. There is no guarantee that any of these estimates, assumptions or projections will be materialized or achieved, and as a result thereof, actual results may vary from the estimates or projections. Furthermore, any such variations may be material. Nothing contained herein is, or shall be relied upon as, a promise or representation as to the past or future.

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