Visa, the global payment giant has made its second investment in a cryptocurrency project. Visa invested millions of dollars in a new company Anchorage. The company provides crypto custody services for investors.
Anchorage has raised $40 million as funding. The firm announced that the funding round was led by Blockchain Capital and Visa Inc. However the amount of Visa’s contribution and Anchorage’s private valuation were kept a secret, a report says. Visa and Anchorage both are founding members of Facebook’s upcoming cryptocurrency project Libra. This was officially announced on June 18, 2019.
As per Fortune, this is the second known funding of Visa Inc. in the crypto world. The global payment firm has already raised $30 million previously for a blockchain startup called Chain in 2015.
This newly acquired funding by Anchorage will be used by the firm to develop an alternative to cold storage based institutional custodies. This will ensure the safety of the assets of customers. The co-founder and president of Anchorage, Diogo Monica said:
“Our mission at Anchorage is to advance institutional participation in the digital asset class, and this funding will improve our ability to do precisely that. To have the support of pioneering organizations like Visa and Blockchain Capital is a validation of Anchorage’s vision for the emerging economy of digital assets.”
On the other hand Terry Angelos, SVP and Global Head of fintech at Visa said that this investment is in direction with Visa’s global strategy to join hands with and invest in upcoming fintech companies. He further added that Visa is pleased to add Anchorage to their growing investment portfolio.
Anchorage offers products that are alternative to “cold storage”. It is a safety measure that investors count on for safe storage of their cryptocurrency holdings. Cold storage custody involves safely storing private keys in a hard to reach manner in offline mode.
The reason this company is gaining attention is that its reach extends beyond the crypto world. Anchorage’s digital asset custody service can attract a number of commercial banks and endowments into the blockchain.