A startup wants to use the blockchain to merge traditional banking with cryptocurrencies has raised $4 million in new investment from several investors, including European venture capital heavyweights like Earlybird.
The concept for Netherlands-based Bitwala’s platform centers on combining all the features and convenience needed for everyday banking in both the traditional and in the crypto world.
The system, according to its founders, will support more efficient operations through a German bank account, provided with Bitwala’s banking partner, which offers SEPA debit and credit transactions, easy management of recurring payments and a debit card.
If this trial is successful, advocates say it could bring on much greater adoption of cryptocurrency-related banking. But they still have a lot to prove when the product goes live soon with 30,000 people already signed up to be among the first to be onboarded.
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At the same time, Bitwala solutions can be embedded into the existing financial infrastructure. A good example of products for consumers is the Bitwala wallet, which allows cryptocurrency trading with access to instant liquidity, integrated into the account.
In addition, deposits in Bitwala accounts will be protected under the German deposit protection scheme and supervised by Germany’s banking supervisors BaFin and Bundesbank, up to 100,000 Euros.
On the corporate side, Bitwala can help in several ways, such as bringing the advantages of blockchain technology into their infrastructure.
“The cryptocurrency community is eagerly awaiting the launch of our new service. 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,” says Jörg von Minckwitz, President of Bitwala GmbH.
Christian Nagel, partner at Earlybird, added: “The background and experience of the team convinced us that Bitwala will allow everyone to engage with cryptocurrencies – seamlessly and in unprecedented simplicity, with all the comfort and security of their bank account.”