Lockchain.ai, the leading AI-powered Blockchain Risk Management platform, has closed its Series A funding.
The nearly $5 million round will fuel further development, adding features that improve the speed and efficiency of clients managing cryptocurrency positions. White Star Capital led the round, with additional investment from Lerer Hippeau, Arrington Capital, and Sonic Boom Ventures, among others.
Lockchain.ai 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 its launch, the company has experienced strong traction with firms such as Broadridge and GSR. It provides risk management recommendations to portfolios with more than $2B aggregate value.
“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,” said Andrew Howard, CEO of Lockchain.ai. “Having worked with many of the largest portfolio teams for the past two years, we’ve proven our models and grown baselines for our AI that effectively deliver insights, recommendations, and predictions at speeds that make them productive.”
A key differentiator is the platform’s use of generative AI to rapidly consume and analyze thousands of data sources. This enables traders to:
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; and
An automation engine to respond to events with pre-built playbooks and exit strategies.
“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.ai provides always-on due diligence and risk monitoring for asset managers and traders who want to know the real-time security status of the assets they trade. This includes examining custodians and counterparties to help traders make informed decisions at scale.
“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,” explained Aviad Stein, Global Head of Innovation and Strategy at Broadridge. “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.”
“With our Series A funding secure, we are focused on expanding key functional areas and enriching our detection and monitoring capabilities,” continued Howard. “Using an innovative and integrated security fabric, we’ll enable greater predictive controls and realize true, portfolio-wide risk management capabilities.”
Key functionality expansions include:
Material Event Detection: expanded intelligence monitoring includes material 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. The data is filterable, searchable, and exportable, so your teams quickly get the data they need.
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 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,” said Sep Alavi, Managing Partner, White Star Capital.