Visa Inc. (NYSE:V) has made a second investment in the cryptocurrency industry after the payment processor put millions of dollars in a startup called Anchorage during the startup’s new funding round.
Visa investment in Anchorage
Anchorage secures digital assets for institutional investors in that rather than using passwords that can be hacked the startup requires withdrawals of crypto to have approval by other employees of the client. The company employs AI and human biometrics review in validation of transactions before they can be executed while at the same time they also provide insurance coverage.
Visa and Anchorage collaborated on Facebook’s project Libra. This will be the second time Visa is showing interest in the cryptocurrency industry after first investing in ‘Chain’ which is a blockchain startup that was acquired by Steller-based startup Lightyear.
The payment processor alongside venture capital firm Blockchain Capital led the funding round of Anchorage which was worth $40 million. The total valuation of Anchorage and the amount of investment that has been put into the startup have not been revealed yet.
Anchorage appeared first when launching the Libra Association
Before June last year the startup was not known and its logo first appeared alongside big names such as Uber, PayPal, Visa, MasterCard and Spotify on a slide presentation during the introduction of the Libra Association. The creation of the association was instigated by Facebook and it is a non-profit that comprises around 28 organisations with a target of growing to over 100 by 2020 to push Facebook’s own cryptocurrency.
In a statement Visa Spokesman and leader of Visa in fintech, Terry Angelos stated that the payment processor is interested in supporting startup such as Anchorage that are dedicated to provision of secure cryptocurrency infrastructure to the burgeoning digital assets industry. He added that Anchorage was in the process of building the foundation of supporting a variety of financial services.
Anchorage’s president and co-founder Diogo Monica stated that the form has been working with Facebook since the beginning of the Libra project. The startup’s project portfolio includes an alternative to offline storage or cold storage that crypto investors can depend on to safely store their holdings.