For a full decade, Chainalysis has carved out a distinct niche in the crypto world as the go-to source for blockchain intelligence for governments around the globe. Now, the New York-based firm is set for a new chapter as co-founder Jonathan Levin takes on the role of chief executive officer just as crypto markets are riding a massive upswing.
Levin, an avid cyclist with a polished English accent, told Fortune this week that Chainalysis's core business serving governments is going strong, and that he sees an opportunity for the company to provide additional services beyond its flagship criminal investigation tools. His remark reflects the growing view in the crypto industry that governments will begin integrating stablecoins and other blockchain-based assets into their day-to-day financial operations.
Chainalysis made its name by creating software to assist law enforcement parse blockchains, which typically publish public and indelible transaction records. The company's tools made it easier to trace criminal transfers involving Bitcoin and other digital assets.
Levin, who trained as an economist, said one of his initial priorities as CEO will be to persuade more companies to adopt its tools for a wider range of activities. Currently, Chainalysis's corporate customers primarily use its tools to screen for money laundering activity but Levin predicts that, as more companies adopt crypto, they will also use the firm's software to detect scams on their platforms.
Chainalysis estimates that its customer mix is now made up of about 65% government customers and 35% corporate clients, but Levin notes the latter group is growing fastest. In its early years, the company attempted to target its products at hedge funds and other crypto traders, but ultimately abandoned the effort. Levin said Chainalysis does not intend to try and re-enter that market.
The company would not provide specific revenue figures, but Levin told Fortune that Chainalysis has 1,450 customers across 100 countries, and that more than 250 of those clients are paying over $100,000 a year. He added that the company is experiencing "mid 20% growth" year-over-year and that the pace of growth is highest in Europe and the APEC region.
Levin told Fortune that Chainalysis does not intend to pursue a public offering in the near future, but that the firm does intend to ramp up its M&A activity in the coming year. This comes after the company recently acquired Transpose, a data platform.
Chainalysis tapped Levin to be CEO after his longtime predecessor, Michael Gronager, took a two month leave of absence. The firm has been tight-lipped about the circumstances that led to Gronager's absence and departure, but noted that he will also step down from Chainalysis's board.
In announcing Levin's appointment, Chainalysis also stated that it had appointed Paul Auvil, a former CFO of Proofpoint and VMware, to its board where he will chair its audit committee.
