Barclays Partnership With Chanalysis Ushers In New Era For Fintech

On Wednesday at the TechStars FinTech accelerator,

a new partnership with startup Chainalysis that many see further opening up the traditional finance sector to bitcoin firms. Bitcoin businesses have long found it difficult to engage with banks as traditional finance has been wary of the risks that come with dealing in cryptocurrencies. However, with one of the UK's largest banks on boarding Chainalysis to its compliance department, many see a union between cryptocurrencies and traditional finance on the horizon.

Barclays' partnership with Chainalysis is expected to help the bank better understand and cope with the risks of dealing with bitcoin firms. The startup is expected to work together with Barclays to find ways for firms within the cryptocurrency industry to meet traditional banks' strict compliance standards. Worries about money laundering and illegal transactions have kept many banks from dealing with the industry, but Chainalysis says it has developed several products that make it easier for banks to perform checks on bitcoin customers.

The partnership between Barclays and Chainalysis is a big step for both firms. For Barclays, working with Chainalysis gives the bank a leg up against competitors as the firm is able to stay on top of evolving trends in the finch space. Chainalysis has gained major exposure from the deal, and the company says it hopes other finance institutions will follow suit and use some of Chainalysis' products as the crytpocurrency space continues to grow.