The UK-based cryptocurrency platform Ziglu was launched following a fundraiser of £ 5,25 million (US $ 6,6 million). As a starting target, the platform aims to put cryptocurrencies in the hands of consumers without complications of any kind.
Announced on Monday, Ziglu allows users to trade GBP for bitcoin (BTC), ether (ETH), litecoin (LTC) and bitcoin cash (BCH). Additional fiat currencies and a debit card are expected to be added between July and August.
Clear the barrier to enter the crypto market
Ziglu was born from an idea by Mark Hipperson, co-founder and CTO of the UK-based Starling Bank, one of the so-called "challenger banks" that challenged historic operators with more elegant, more intuitive and transparent services.
Things have changed since 2015, when much of the traditional banking sector entered the fintech market, said Hipperson. "In 2020, we believe that the 25-45 age group [demographically] will want easy and secure access to cryptocurrencies," he said.
"Only about 1% of people use the big platforms to buy cryptocurrencies and we think we can do better, and maybe we can also provide them with better prices." The market for apps that offer cryptocurrencies is heating up.
For example, Square, the fintech venture launched by Twitter CEO Jack Dorsey, launched a feature to buy bitcoins in mid-2018 and recently reported bitcoin revenues of $ 306 million on its Cash App service.
In Europe, London-based Revolut, which recently raised $ 500 million and valued the platform at $ 5,5 billion, allows users to purchase cryptocurrencies from the Luxembourg-based BitStamp exchange.
A gradual departure
Ziglu's original plan was to launch with five major exchanges, but so far he has only linked to two, which Hipperson has refused to name. The startup had to adapt its market plans to the circumstances brought about by the COVID-19 pandemic, he said.
Other exchanges like Bitcoin system will be added in the coming weeks, he said. Part of Ziglu's secret sauce is about requests for support to find the best deal for consumers.
For example, if the best bitcoin price is in dollars on Kraken, the service converts Fiat and completes an agreement on that specific exchange. The planned debit card is based on Mastercard as a partner of the scheme and Global Processing Services is the payment processor of Ziglu.
The funds raised for the platform's launch come from individuals and friends with high net worth, but no VCs, said Hipperson. As for fiat, Ziglu plans to add currencies based on customer demand. "I expect we'll get to 15 currencies," later this year, said Hipperson.
