Cryptio Raises $10M to Simplify Cryptocurrency Accounting
Cryptio was founded in 2018 by experienced tech entrepreneurs, Antoine Scalia and Nicolas Kokkalis. The startup offers a “next-generation” accounting and compliance platform for cryptocurrency businesses that is designed to be user-friendly and easy to integrate.
Cryptio’s Series A funding round was led by European VC firm Point Nine, with participation from other institutional investors including Draper Associates, Protocol Labs, Avantgarde Finance, BlueYard Capital, Alven, and CoinShares. In 2021, Cryptio had also raised a total of $1.2M in funding over 2 rounds while in 2022 raised $10 million. This latest injection of capital takes the total raised by the company to $11.2 million.
The new funds will be used primarily to hire additional staff, with a focus on engineering and product development. The company is also looking to expand its offerings beyond crypto businesses, into the traditional financial sector with products tailored for publicly traded companies and institutions.
The new funding will help Cryptio to further build out its blockchain data layer, as well as scale the reporting layer to meet the needs of larger institutional investors. This is important because these investors often need to automate accounting and tax reporting in order to stay compliant. With this latest round of funding, Cryptio is well-positioned to become a leading provider of such services.
In the past, many financial institutions and corporations have shied away from decentralized finance (DeFi), due to the lack of transparency and accountability. However, with the help of the Cryptio platform, these businesses can now create auditable records of their DeFi data, in order to comply with accounting, treasury, and tax filings. By connecting this data to traditional accounting software like Xero or QuickBooks, businesses can have greater visibility into their financial operations.
The Cryptio platform offers a number of benefits for users. First and foremost, it provides a much-needed solution for those who want to make use of DeFi products and services, but need to do so in a way that is compliant with existing regulations. This not only makes it easier for businesses to adopt DeFi solutions but also helps to increase trust and confidence in the overall ecosystem. In addition, the platform’s reporting capabilities give users greater insights into their financial operations, which can lead to improved decision-making. Finally, the fact that Cryptio integrates with popular accounting software packages makes it even more user-friendly and accessible.
Cryptio is one of a handful of companies that are helping to build the infrastructure necessary to support the growing DeFi ecosystem. As the industry matures, we expect that more businesses will begin using services like Cryptio to manage their finances in a way that is compliant with traditional banking regulations.
The Cryptio client list also includes some of the most well-known and popular crypto-native companies, such as the company that created MetaMask, Consensys; the open-source liquidity protocol, Aave; and the virtual game environment, The Sandbox.
These firms have joined forces with Cryptio in order to provide their customers with the best possible experience when it comes to digital asset management.
In the long term, Cryptio plans to release modules that will allow for more complicated tracking of DeFi systems and assets. Additionally, the firm plans to release a reporting module for impairment testing in order to ensure that assets have not drastically dropped in value. By implementing these modules, Cryptio will provide users with greater transparency and more comprehensive data about their holdings.
A back-office infrastructure designed for crypto is one of the most critical yet still missing infrastructures in order to enable broader corporate adoption of token-based financial products. While many believe that the key to mass crypto adoption lies in consumer-facing applications, the reality is that unless there are robust back-end systems in place to support these applications, they will never reach critical mass.
This is because traditional back-office infrastructures simply were not designed to accommodate the unique characteristics of digital assets. From accounting and compliance to custody and settlement, nearly every aspect of managing tokenized assets is fundamentally different from its fiat equivalent. As a result, existing back-office solutions are woefully inadequate for handling crypto assets, and trying to force them into this mold only creates more problems down the line.
Fortunately, there are a number of startups working on building out purpose-built back-office solutions for managing digital assets. By leveraging cutting-edge technologies like blockchain and distributed ledgers, these companies are creating platforms that are specifically designed for tokenized asset management. With these kinds of solutions in place, businesses will finally have the infrastructure they need to manage their digital assets in a way that is efficient, compliant, and secure.
Barry Pene is a stern blockchain research/copywriter. Barry has been trading cryptos since 2017 and has been invested in issues that would put the blockchain industry on the right pedestal. Barry's research expertise cuts across blockchain as a disruptive technology, DeFis, NFTs, Web3, and reduction of energy consumption levels of cryptocurrency mining.
