Medici Ventures Latest Blockchain Investment Bridges Fiat With Crypto
Medici Ventures, Overstocks blockchain technology company, has invested an undisclosed sum in a Utah based company called Bitsy that specializes in bridging cryptocurrencies with fiat.
The investment marks one of several that Medici Ventures has made in recent years as its parent company, under the leadership of CEO Patrick Byrne, continues to tout blockchain technologys long-term prospects.
Medici Ventures believes Bitsys ability to bridge cryptocurrency and fiat will make global cryptocurrency transactions more secure and support other blockchain businesses the company has invested in, such as tZERO, Bitt, Ripio.
Bitsy and the work it is doing dovetails perfectly with Medici Ventures goal of investing in companies that are democratizing capital by eliminating middlemen and re-humanizing commerce, said Jonathan Johnson, an Overstock.com board member and the president of Medici Ventures, who has joined Bitsys board of directors.
Empowering Crypto Users
Bitsy enables cryptocurrency users to maintain control of their money when making international transactions while complying with U.S. anti-money laundering laws. Steve Hopkins, Medici Ventures chief operating officer, realized that most companies in Medici Ventures portfolio were not able to operate in the U.S. on account of anti-money laundering requirements. Customers could not make international transfers because centralized exchanges did not give them control of their own funds.
In order to make international bitcoin transactions, customers had to rely on vendors that actually transferred the bitcoins, Johnson told CCN. These vendors often had questionable reputations and in some cases were arrested for unlawful money transmissions.
So, Steve set out to create a bridge between fiat currency and cryptocurrency that would give users absolute control over their own money but still comply with U.S. law, Johnson said. Overstock CEO Patrick Byrne was quick to recognize the value of this approach and to support Bitsy with investment and access to Medicis world class blockchain developers.
Bridging Crypto And Fiat
Bitsy is unique in the way it bridges cryptocurrency and fiat. Where centralized exchanges like Coinbase and Kraken hold users keys, Bitsy provides them their own private keys, removing the need to police whom users send money to.
Recently, Coinbase reminded us that its users dont actually control the funds in Coinbase by announcing that users could no longer send funds to Wikileaks from their Coinbase accounts, Johnson said. Bitsys decentralized architecture fully complies with all anti-money laundering laws and still allows users to send bitcoin to anyone in the world without permission from Bitsy or anyone else.Read full story on CCN