Bitwala, a Blockchain Startup has raised €4 million in new funding which will help to develop a planned blockchain bank account service. The service is specially scheduled to be released in November 2018 and it is first of its kind service available in Germany. The service will allow the management of both euro deposits and bitcoin funds within the same bank account.
Before its launch, the service has grabbed the attention of 30,000 customers who have already signed up for the service. According to Bitwala’s blog post, Venture Capital Earlybird and Coparion are the two biggest investors.
Bitwala was founded way back in 2015 as a financial services company which focuses on improving value exchange between customers via a simple and cost-effective system. By releasing its regulated blockchain service, the firm fulfills its purpose of providing a smooth transition between the cryptocurrency and legacy financial systems.
The funding acquired will be used for the development purpose in the product line, along with a bid to launch what is known as the “the world’s first fully regulated bank account” in the upcoming few months. The firm announced that since its initial launch in August, the planned product has gathered a waiting line of 30,000 potential users.
The crypto-fiat service available by Bitwala is developed to offer users with the benefit of utilizing the services of German bank account, endowed with Bitwala’s banking partner, which offers SEPA debit as well as credit transactions. Also, it provides simple and effective management of recurring payments and a debit card.
Customers using this system will be able to utilize Bitwala account for different settlement purposes, like to receive salary payments and pay their monthly rent. Apart from Fiat-related services, the bitcoin bank accounts will offer users the possibility and immediate access to liquidity in trading digital assets instantly.
Jörg von Minckwitz, who is the president of Bitwala GmbH said, “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.”
Christian Nagel, who is the partner and co-founder of VC firm Earlybird, said, “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.”
Bitwala also described some of the past troubles in the announcement. Bitwala was one of the numbers of companies which had to suspend their debit card services after Visa ended the membership of payments solutions provider WaveCrest Holdings in January. Due to this, Bitwala processed around €100 million in volume for its 80,000 customers. This was taken place according to a planned system which then represented it as a powerful global money transfer platform using blockchain technology.