Former Lemon founder Wences Casares, has secured $20 million in series A funding to develop a Bitcoin cold storage wallet.
Casares has received funding from Benchmark, Fortress Investment Group, and Ribbit Capital. According to Casares, intentions are to create the “Fort Knox” of the Bitcoin world. The wallet, named Xapo, uses multiple layers of security protocols to keep the accounts and funds secure. Xapo is also insured against loses by Meridien Insurance.
Xapo stores accounts on a non-internet connected computer with encrypted data backs ups spread across multiple hard drives and paper wallets, and are physically stored in vaults in geographically dispersed locations.
“Think of it like a safe deposit box at your bank. When I first learned of Bitcoin, I immediately saw the promise and utility of the currency and platform. I grew up in Argentina, where at times the economy experienced 12,000% annual inflation. I believe that a digital currency like bitcoin could solve the disjointed nature of our world economy,” says Casares.
Xapo is intended to be a one-stop-shop for Bitcoin users offering wallets and vault services. Users interested in Xapo’s vault services will need to pay an annual fee of 0.12% for each deposit made.
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I would seem after recent events of large amounts of Bitcoin being compromised, serious investors in the cryptocurrency would be interested in such a service.
Casares recently sold his previous endeavor, Lemon, to LifeLock for $42 million.
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