Spain-based bitcoin exchange Coinffeine has secured investment of an undisclosed size from Spanish bank Bankinter, through its venture capital arm Bankinter Innovation Foundation.
Coinffeine differs from most bitcoin exchanges, which act as a third party entrusted with customer funds. According to its website: “Coinffeine is an open source, peer-to-peer (P2P) bitcoin exchange platform. With Coinffeine you are able to buy and sell bitcoins securely and anonymously without having to rely on a centralized exchange like MtGox or Bitstamp. It’s like BitTorrent for your bitcoins!”
Like BitTorrent, it is a desktop application. The exchange says that it uses a mathematical protocol based on game theory to ensure the secure transfer of bitcoins and fiat between counterparties. There is no mention of Ripple or Bitcoin 2.0 technologies being used to facilitate such transfers.
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It is not every day that we hear of banks backing digital currency initiatives- many ventures would be happy to just keep their accounts open. Fidor Bank in Germany stands out the most in terms digital currency friendliness, partnering with bitcoin.de and Kraken, as well as employing Ripple for currency transfers.
Coinffeine has yet to launch, but was voted among the 12 most innovative startups in Spain by the Silicon Valley Immersion Program.
For a detailed list of recent investment and M&A activity in the crypto industry, please visit the DC Magnates Crypto Deal Table.