Investors including Horizons Ventures, Hong Kong magnate Li Ka-shings venture-capital company, Tokyo-based Digital Garage and the investment arm of insurance giant AXA Group contributed to the funding. Horizons Ventures also took a seat on Blockstreams board.
Launched in 2009, Bitcoin is a digital currency that operates on a decentralized computer network without a monetary authority. In 2015, the technology underlying the currency, called blockchain, has garnered increasing attention from Wall Street firms. Banks are tinkering with the technology, joining development consortia and taking stakes in companies.
Blockstreams business is focused around an idea called sidechains. These are Bitcoin-like ledgers that operate independently of, but are pegged to, Bitcoin. This allows users to build a separate platform for a specific use but still have access to the Bitcoin blockchain.
The company, based in Montreal, has released two products so far. The first, Elements, is an open-source platform for building and testing applications. Liquid, designed for Bitcoin exchanges, allows for high-speed transactions. Several exchanges, such as Kraken, BTCC, and Bitfinex, have already signed up for Liquid, which is expected to go live by the end of March 2016. Exchanges under contract will pay a monthly subscription fee for use.
Companies focused on virtual currencies raised USD 490 million in 2015, according to data from CoinDesk, an industry news service. Funding rounds so far in 2016 suggest the pace is picking up.
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