Blockchain analytics firm Elliptic has secured $120 million in a funding round backed by Nasdaq and Deutsche Bank. The company plans to funnel the capital into expanding its AI-powered monitoring tools, a move driven by the explosion of stablecoins and tokenized finance.
Why the funding matters
The round marks one of the larger raises in the crypto compliance space this year. Nasdaq and Deutsche Bank joining as backers signals that traditional finance is taking the need for blockchain surveillance seriously. Elliptic's software already helps banks, exchanges, and regulators track suspicious transactions across hundreds of cryptocurrencies. The new injection will let it build out capabilities specifically for the fast-growing stablecoin market.
CEO Simone Maini said the investment reflects growing demand for tools that can keep pace with the shift toward tokenized assets. She pointed to the sheer volume of stablecoin activity and the complexity of transactions on DeFi protocols as key drivers.
Focus on stablecoins and tokenized finance
Stablecoins like USDT and USDC now settle billions daily, often moving across bridges and layer-2 networks that older monitoring systems weren't designed for. Elliptic's AI tools aim to flag illicit flows in real time, even when funds hop between chains. Tokenized finance — the process of putting real-world assets like bonds or funds on a blockchain — adds another layer of monitoring challenges.
Regulators in the US, Europe, and Asia have been tightening rules around stablecoin issuers and crypto service providers. Elliptic's expansion comes as those same regulators push for better transaction screening. The company's machine-learning models analyze transaction patterns rather than relying solely on known blacklists, which can miss novel laundering techniques.
With the fresh capital, Elliptic plans to hire more engineers and data scientists, particularly those experienced in natural language processing and graph analysis. The company is also eyeing deeper integration with custody platforms and decentralized exchanges. Maini said the goal is to make compliance invisible — a layer that works automatically without slowing down legitimate users.
Elliptic has not disclosed whether the funding includes a secondary component or what valuation the round commanded. Nasdaq and Deutsche Bank join existing investors like Wells Fargo's venture arm and SoftBank. The new money should keep Elliptic ahead of a growing pack of competitors, including Chainalysis and CipherTrace, which have also raised sizable rounds recently.
The first products from this expansion are expected in the second half of next year. Until then, Elliptic's existing clients will get early access to beta versions of the upgraded monitoring suite. Whether the technology can keep up with the breakneck pace of stablecoin innovation remains an open question — one the company is betting $120 million it can answer.
