Recently, the German blockchain banking service, Bitwala closed a funding round of €4 million from investors Earlybird and coparion. With the latest investment, Bitwala is all set to launch the first-ever platform that will enable consumers to have both euro deposits and bitcoin funds within the same bank account.
The Fintech startup has plans to kick off the platform by November 2018 and more than 30,000 people have already signed up to be among the first to be onboarded. The account will combine all the features needed for everyday banking in both the traditional and in the crypto world. By launching its regulated blockchain service, the company fulfils one of its original goals, which involves bringing a smooth transition between the cryptocurrency and legacy financial systems.
For last few months, the startup has been working with regulators and German partner bank to bring the world’s first full crypto-friendly bank account. Users will benefit from a German bank account, provided with Bitwala’s banking partner, which offers SEPA debit and credit transactions, management of recurring payments and a debit card. Furthermore, a cryptocurrency wallet, which allows cryptocurrency trading with access to instant liquidity, is integrated into the account.
“The background and experience of the team convinced us that Bitwala will allow everyone to engage with cryptocurrencies with all the comfort and security of their bank account.” said Christian Nagel, partner at Earlybird venture capital.
I’m very proud that with our new product we will close the gap between crypto and traditional banking and solve one of the biggest hurdles on the road to mainstream adoption,” said Jörg von Minckwitz, President of Bitwala GmbH.
Bitwala has substantial experience in the young market of blockchain banking, according to the company’s press release. Until late 2017, Bitwala operated as a hub for worldwide money transfers using blockchain as a vehicle. Previously, the company processed almost 100 Million Euros in transaction volume for their 80,000 customers, but the service had to be suspended due to sudden license removal of their card issuing partner in late 2017.
With the new product offering, deposits in current accounts will be protected up to 100,000 Euros under the German deposit protection scheme and supervised by Germany’s banking supervisors BaFin and Bundesbank, the company added.
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