Bitwala’s Major Funding Round
In an exciting move for cryptocurrency banking, Germany-based Bitwala has successfully raised €13 million (almost $14.5 million) in funding, as announced in a recent press release. This financial boost marks a significant milestone for the innovative bank and reflects growing investor confidence in the merger of Bitcoin and traditional banking systems.
Investors on Board
The funding was spearheaded by an impressive consortium of international investors, including notable names such as Sony Financial Ventures, Global Brain, and the British investment company NKB Group. Half of the investment was provided by Earlybird Venture Capital and coparion, emphasizing the bullish outlook on cryptocurrency’s integration into mainstream finance.
Connecting Two Worlds
Jan Goslicki, the co-founder and Chief Compliance Officer at Bitwala, shared the motivation behind launching the platform:
“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.”
This commitment to regulatory compliance positions Bitwala uniquely in the market.
A Broad Clientele
Bitwala has claimed a wide-reaching client base, serving customers across all 31 member countries of the European Economic Area. It stands out as the only bank offering a free account that comes with an integrated Bitcoin wallet and trading options. Moreover, for added security, customer deposits are insured up to €100,000 (more than $111,000), and Bitcoin assets are secured in multi-signature wallets to enhance protection against potential hacks.
Challenges Along the Way
Despite the promising developments, Bitwala has faced challenges along its journey. Earlier this year, users experienced disruptions when Visa’s cryptocurrency debit cards ceased functionality after the bank ended its relationship with the debit card provider WaveCrest. Such challenges underscore the volatile nature of the cryptocurrency landscape, even for established entities like Bitwala.
