Cryptio, an accounting and data platform focused on regulated digital assets, has raised $45 million in a Series B funding round, highlighting growing demand for tools that help financial institutions reconcile and report blockchain-based transactions within traditional accounting systems.
The round was co-led by venture firms BlackFin Capital Partners and Sentinel Global, with participation from 1kx, BlueYard Capital, Alven and Ledger Cathay Capital.
Cryptio develops software that helps companies reconcile activity across wallets, custodians and exchanges, translating blockchain transaction data into accounting records used for financial reporting, audits and compliance.
The company says it serves more than 400 enterprise clients and has processed over $3 trillion in transaction volume. Its clients include crypto companies such as Circle, Gemini and Securitize, as well as traditional financial institutions, including Société Générale’s SG-Forge.
Several other companies operate in the same niche as Cryptio, highlighting the emergence of a small but growing market for crypto accounting and financial reporting infrastructure. Companies such as Lukka, TaxBit, Bitwave and CoinLedger offer software that helps businesses reconcile blockchain transactions and convert them into records used for tax reporting, audits and regulatory compliance.
Related: Amid crypto VC shakeout, Dragonfly closes $650M fund with focus on real-world assets
Demand for tokenized finance infrastructure continues to grow
Cryptio’s growth is also being fueled by rising institutional interest in tokenized assets, which require accounting systems capable of recording and reconciling blockchain-based financial activity.
Sidra Pervez, senior vice president at tokenization firm Securitize, said maintaining accurate financial records across capital markets is becoming more important as traditional finance expands into tokenized securities.
Loic Fonteneau, managing director at BlackFin Capital Partners, said “digital assets are becoming embedded within regulated financial markets,” which requires “institutional-grade infrastructure” to support accounting, tokenized asset reporting and lending.
Major financial institutions are increasingly participating in tokenization, with the likes of HSBC, BNP Paribas and Goldman Sachs backing the tokenization-focused Canton Foundation. The industry group supports the development and governance of the Canton Network, a blockchain designed for regulated financial markets.
In January, State Street announced the rollout of a new crypto tokenization tool to help clients create tokenized money market funds, exchange-traded funds and tokenized deposits.
The market for tokenized real-world assets, excluding stablecoins. Source: RWA.xyz
While estimates vary, industry data shows that the total value of tokenized real-world assets, excluding stablecoins, has surpassed $26 billion, with much of the demand coming from private credit and US Treasurys-backed funds.
Other fast-growing segments include tokenized money market funds — blockchain-based versions of traditional funds that invest in short-term government debt and other low-risk securities.
Related: Crypto Biz: Kraken plugs into the Fed
