Lockchain.ai, a leading AI-based Blockchain Risk Management platform, announced it has closed its Series A funding. The nearly $5 million round will be used to fuel additional development, adding features that improve speed and efficiency for clients managing cryptocurrency positions. And White Star Capital led the round, with additional investment from Lerer Hippeau, Arrington Capital, and Sonic Boom Ventures, and others.
Lockchain.ai had launched in April 2024 to deliver an automated risk management solution that helps traders, investors, and fund managers in the blockchain ecosystem identify and preemptively manage risk factors that may impact portfolio positions. Since the company launched, it has experienced strong traction with firms such as Broadridge and GSR, and provides risk management recommendations to portfolios with an aggregate value of more than $2 billion.
A key differentiator is the platform’s use of generative AI to rapidly consume and analyze thousands of data sources. This facilitates traders with:
— A real-time view of risk
— Instant notification of important on- and off-chain events that may impact their portfolio
— Actionable and straightforward insights on the potential effects of those events
— Predictive impact analysis of contagion risk
— An automation engine to respond to events with pre-built playbooks and exit strategies
Lockchain.ai also provides always-on due diligence and risk monitoring for asset managers and traders seeking real-time security status of their trade assets. And this includes the examination of custodians and counterparties to help traders make informed decisions at scale.
The key functionality expansions include:
Material Event Detection – Expanded intelligence monitoring includes events that may impact an asset, protocol, or counterparty.
Accelerated Data Discovery – A unified data viewer provides access to the complete information collection on an entity to accelerate listing and due diligence investigations. Data is filterable, searchable, and exportable, so your teams get the data they need fast.
Automated Custom Frameworks – Client forms, processes, and reports can be integrated into a custom framework engine, allowing Lockchain data to be mapped directly to client needs. Pre-built frameworks for popular regulatory agencies such as NYSDFS and ADGM are also included.
Regulatory Compliance Automation – Risk disclosure and monitoring support for the Markets in Crypto-Assets Regulation (MiCA), among others.
Lockchain.ai is based in Athens, Georgia with offices in New York City.
KEY QUOTES:
“Cryptocurrency continues to be an exciting market with incredible opportunities for growth and increased utilization. It is also volatile, making data, intelligence, and speed key to managing portfolio accounts at scale. Having worked with many of the largest portfolio teams for the past two years, we’ve proven our models and developed baselines for our AI that effectively delivers insights, recommendations, and predictions at speeds that make them productive.”
“With our Series A funding secure, we are focused on expanding key functional areas and enriching our detection and monitoring capabilities. Using an innovative and integrated security fabric, we’ll enable greater predictive controls and realize true, portfolio-wide risk management capabilities.”
– Andrew Howard, CEO of Lockchain.ai
“The Lockchain platform enhances our risk management practices for digital asset entities by automating and standardizing core processes. This strengthens our decision-making and empowers us to appropriately assess complex opportunities with speed and precision,” said
– Sean Swift, Operational Risk Manager at GSR
“Lockchain delivers powerful insights that can be leveraged to advance the maturation of useful data available to broker-dealers, asset managers, exchanges, and wallet providers to make investment decisions about digital assets. Their proprietary AI produces reliable and appropriate outputs in a scalable way and helps us continue our lead-first approach in progressing the state of standardization and compliance of digital asset regulations across the globe.”
– Aviad Stein, Global Head of Innovation and Strategy at Broadridge
“Lockchain is setting new standards for risk management in the blockchain space and we’re pleased to be extending our support for the team. The combination of their advanced AI capabilities and deep understanding of market dynamics positions them as a game-changer for asset managers, traders, and regulators navigating the complexities of this fast-evolving ecosystem.”
– Sep Alavi, Managing Partner, White Star Capital
