Bitwala, a German bitcoin (BTC) bank revealed that it had received $14.5 million in a funding round. The bank unveiled this news on July 31 through a press release. Per the announcement, Sony Financial Ventures spearheaded this funding round alongside British investment firm NKB Group. This funding round marked Sony Financial Ventures’ first-ever investment in the crypto sector. According to the press release, Earlybird Venture Capital and Coparion provided half of the raised amount.
Jan Goslicki, the co-founder and chief compliance officer of Bitwala noted,
We started Bitwala to do something that nobody thought was possible: to connect Bitcoin and the conventional financial system while fulfilling the requirements of the strict German banking regulation.
At the moment, Bitwala offers a crypto banking service with an in-built BTC wallet, debit card, and trading options. Thanks to solarisBank’s services, Bitwala lets its clients trade BTC directly out of a current account.
The raised funds will help the firm grow its customer base and adding new staff. Apart from this, Bitwala will also launch bitcoin accounts for businesses.
A Wide User Base in the EEA
Just months after Bitwala launched, the firm claims to have a wide user base. In a report, Bitwala noted that it has customers in all 31 member states of the EEA. On top of this, the bitcoin bank claims that it is the only firm that offers free accounts with integrated BTC wallets and trading features.
Bitwala also stated that it is the safest, fastest, and most convenient way of trading and managing BTC. Allegedly, the bank purports to insure deposits worth more than $110,000. In addition to this, it noted that it stores all BTC in multi-signature wallets. In so doing, it mitigates the risk of having a point of weakness that hackers can manipulate.
Commenting on the firm’s role in growing the crypto sector, its CTO and co-founder, Ben Jones said,
Today, we are offering a bridge for both mainstream users and blockchain buffs, who want to interact with the emerging blockchain ecosystem – the growing digital economy spreading across the globe. While there is still huge upside potential, it has already been a humbling experience to see the ecosystem grow and for Bitwala to play such an important part in that.
This news comes after Bitwala unveiled that it had received an invitation to attend the EC Horizon 2020 event. This program is the largest research and innovation in Europe. It supports startups from different sectors including, but not limited to AI, agriculture, and finance. In this event, Bitwala is set to compete with other firms to secure funds that will help boost its growth.
Do you Sony Financial Ventures’ investment in Bitwala shows mainstream firms are no longer afraid to dip their toes into crypto? Let us know in the comments below.