Scaling has been the latest buzzword shaking up the blockchain world leading up to the Bitcoin network’s hard fork on August 1st. Networks aren’t the only thing increasing in size, however, as currency exchange and wallet provider Coinbase announced that bolstering the capacity and offerings of their service will be a primary focus after this latest round of funding.
$100 Million Raised
Led by IVP and including participation with notable firms such as Spark Capital and Draper associates, San Francisco-based Coinbase completed a Series D round of funding, successfully raising $100 million. As one of the early preeminent wallet providers, Coinbase now boasts over nine million users and offers Bitcoin, Ether, and Litecoin exchanging in over 30 countries. With a diverse portfolio including GDAX, the Global Digital Asset Exchange, and proprietary Ethereum-based browser Toshi, and a market capitalization exceeding $10 billion, it’s no surprise that Coinbase attracted the attention of VC firms like IVP.
Where Does the Money Go?
In a recent post on the Coinbase blog, co-founder and CEO Brian Armstrong outlines the strategic areas where Coinbase will allocate much of this funding in effort to expand their company. To offer a better customer experience, the company will invest heavily in growing their engineering and customer support teams to continually improve their wallet and assist the increasing number of users. Coinbase will also expand its GDAX arm into New York City to better serve institutions and professional traders. And finally, Armstrong highlighted browser Toshi as an area to see major investment, citing it as a means to facilitate “digital currency’s shift from speculative investment to global payment network.”
Size Does Matter
All three areas Armstrong identified as receiving additional investment from their recent funding are focused on scaling the exchange’s operation. Having exchanged over $25 billion for their customers and being widely regarded as one of the most high-profile digital currency organizations, Coinbase attracts a significant volume of users and remains one of the most user-friendly on-ramps into the world of cryptocurrency, especially for those unfamiliar with the technology.