TRM Labs, a cryptocurrency compliance and risk management platform, said it secured $4.2 million in additional seed funding from Initialized Capital, Blockchain Capital, PayPal Ventures and Y Combinator. 

The new funding brings the total amount of seed capital to $5.9 million and will be used to grow the company's engineering and data science teams for expansion into new markets and to accelerate product development. 

"At TRM we are fueled by a fundamental belief that cryptocurrency and blockchain can democratize access to financial services and empower billions of people," Esteban Castano, co-founder and CEO of TRM Labs, said in a press release. "By building solutions to prevent cryptocurrency fraud and financial crime, we enable this vision and build a safer financial system for billions of people."

The company launched this summer out of the Y Combinator startup accelerator program. The company works with banks, brokerages and exchanges across the U.S., Latin America, Europe and Asian markets. 

Cover image: TRM.