According to a recent report, global payment giant– Visa, has made its second investment in a crypto initiative by leading a $40 million funding round of Anchorage firm.
Visa reportedly led the round alongside major virtual currency venture capital (VC) company Blockchain Capital and the initiative is expected to provide support for institutional-grade crypto custody service Anchorage which itself raised $17 million in an investment led by Andreessen Horowitz.
Although, neither the amount of Visa’s contribution nor the private evaluation of Anchorage was revealed, both of them are founding members of Facebook’s digital currency initiative Libra which was officially launched on 18th June.
This makes it the second time that the payment giant will be investing in a crypto-related firm as it previously took part in a $30 million funding round in blockchain firm Chain in 2015 along with Citi and Nasdaq.
The Chief Executive Officer at Chain, Adam Ludwin stated that the larger efficiencies major financial services providers are expected to help unlock as the technology continues to grow.
“Applied intelligently, blockchain networks fundamentally improve how assets move between parties, and we are thrilled to be partnering with the organizations we believe are best positioned to capitalize on the inevitable changes in market structure that are on the horizon.”
How the Funds Will Be Spent
Also, the new funding is expected to be used to make available another option for cold storage-based institutional customers to ensure the security of customers’ assets.
Alternatively, the firm uses a system of multiple approvals and human reviews in addition to biometric-based software to provide safe storage of crypto.
Meanwhile, Anchorage launched its insurance coverage solution which is quite different from most custodians which utilises a combination of cold and hot storage. It was revealed that the solution covers both types of digital asset storage under one policy.