Coinbase, one of the biggest Bitcoin and Ethereum exchange with millions of customers, has raised $100 million, it’s CEO, Brian Armstrong, announced today.
The Series D round was led by IVP, which has $5.4 billion in committed capital with expertise in later-stage funding, having invested in Twitter, Slack, DropBox and others.
Spark Capital, Greylock Partners, Battery Ventures, Section 32 and Draper Associates also participated in the round following “unprecedented growth” at Coinbase.
“We have now exchanged over $25 billion USD of digital currency for our customers,” Armstrong says, with the exchange using the funds to scale further in support and back end.
They will also further invest in the development of Toshi, an ethereum based app browser of sorts and a payment chat-app somewhat similar to WeChat.
The exchange is focusing on building a consumer interface for digital currency apps to lower entry for new digital currency applications that can be used by ordinary people with the aim of scaling up to 100 million users.
Then they plan to turn into a full on bank of sorts by recreating the existing financial system on open networks, providing loans, means of investing, venture capital funding and merchant processing.
They hope that allows them to scale to a billion users, with the exchange clearly not lacking any ambition in their future plans.
Plans which their investors are betting one of bitcoin’s oldest exchange will be able to execute successfully, but their rise hasn’t been without problems.
A glitch in Gdax temporarily sent bitcoin’s price to six cents, margin calling many BitMEX traders. While a large market sell order that sent eth’s price to ten cents had ethereum traders joking there was strong support at the price level of zero.
Moreover, their recent handling of the Bitcoin Cash hard-fork chain-split angered many bitcoiners from both sides of the divide, leading to an exodus of sorts.
But the exchange remains one of the easiest way to buy bitcoin or ethereum for non-technical users and they have behaved in a largely professional manner, refunding the eth flash-crash traders.
With the new multi-million investment, they might also be able to considerably scale Gdax and hopefully offer regulated margin trading to the US market.