Twitter, Tim Draper, and Others Invest $20 Million in OpenNode, a Bitcoin-focused startup

The company, which was launched in 2018, is focused on developing Bitcoin and Lightning Network payment infrastructure to aid in the growth and adoption of these technologies.

 

  • Kingsway Capital, located in the United Kingdom, led the round.
  • “The investments are a nod from people who are sought after as excellent investors and looking at the future of global payments,” said Josh Held, OpenNode’s head of strategy.

OpenNode, a bitcoin payment processor and infrastructure provider, announced on Wednesday that its $20 million Series A was oversubscribed, valuing the firm at $220 million.

The round was led by Kingsway Capital in the United Kingdom, with participation from Twitter, Tim Draper, and Avon Ventures, a venture capital fund linked with Fidelity Investments’ parent business.

“The investments are a nod from people who are sought after as excellent investors and looking at the future of global payments,” said Josh Held, OpenNode’s head of strategy.

“For us, it reaffirms our belief that Bitcoin is the new global payment’s basic layer.”

The funds will be used to expand the company’s security, compliance, marketing, and engineering teams, according to Held.

The company, which was launched in 2018, is focused on developing Bitcoin and Lightning Network payment infrastructure to aid in the growth and adoption of these technologies. It offers bitcoin payment solutions such as e-commerce plugins that help businesses and platforms like Shopify and OpenCart optimize APIs.

“Digital currencies empower more individuals around the world to engage in the market with less friction,” said Ester Crawford, Twitter’s group product manager.

According to Held, the company is going through a “major growth era” and has witnessed an increase in demand from worldwide organizations and platforms. “So we required the human capital to continue teaching around the area, building use cases, and ultimately designing experiences for payment businesses, exchanges, digital wallets, and other users,” he continued.

According to its website, OpenNode currently serves over 14,000 users in over 120 countries. Held wouldn’t specify how many users the business expects to have by 2022.

OpenNode wants to keep using the lightning network to power payment processors, and it wants to focus on adding a wallet to help with exchanges, according to Held.

“With the wallet, we’ll be expanding our capabilities with things like account-linked debit cards, providing new local currencies and settlement alternatives, and so much more,” Held explained.

In the future, the company intends to broaden its reach outside the Bitcoin and crypto environment, teaching others on how the industry is changing and how they may participate, according to Held.

“We plan to use this platform to serve a variety of enterprises, platforms, and people all across the world,” Held explained.

 

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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