Elliptic plans to use the investment, from private equity group Paladin Capital, the Spanish banking giant Santander and venture capitalists Octopus Ventures, to expand a recently-opened office in New York and target big banks that want to use the blockchain technology.
“People realise that if Bitcoin and blockchain is going to be taken seriously you have to start acting like the rest of the world,” Dr Smith said.
Paladin Capital, a US-based investor with close connections to the US government, led the investment. Kenneth Minihan, a former director of the US National Security Agency who is now a managing director at Paladin, said: “Elliptic is a game-changer for blockchain and is already trusted by some of the smartest minds in law enforcement and compliance. The firm’s monitoring capability will be an essential component of any blockchain in the future and we will help Elliptic to expand in the US, via our contacts and knowledge of US law enforcement and government agencies.”