Gold-Backed Blockchain Venture Raises $3.5 M From Investors Including Soros’ Son
Toronto-based financial services platform BitGold has raised $3.5 Million in a Series A funding round led by PortVesta Holdings, PowerOne Capital, and Soros Brothers Investments.
Co-founded by Roy Sebag and Josh Crumb, BitGold’s plan is to offer free global payments based on the blockchain technology combined with access to secure, redeemable gold for savings.
Blockchain technology has unleashed a wave of payments innovation that will empower people the world over by lowering costs and increasing access to safe and transparent financial services. We see gold, the asset bitcoin was designed to mimic, as an important element in this empowerment. The flexibility of the BitGold platform allows gold to be a core savings account coupled with digital currency for seamless global payments, or as a natural-world storage and safety valve for an inevitable internet of money. The internet of money should be rooted in choice and individual empowerment, and we provide that in a flexible and secure platform.
Sebag also noted:
Since my days as a professional investor I have wondered why there’s no easy way to own and spend gold in a legal, transparent, and tax-compliant manner. Technological breakthroughs in decentralized payment technologies such as the blockchain and ripple have created a historical opportunity to solve one of the main challenges preventing gold from being useful again in daily transactions. True gold ownership requires gold to be safely vaulted and stored, making it extremely difficult to spend, especially in micro-transactions. At BitGold, we solved this problem by developing a platform that is part gold exchange, part payments technology and part custodian, resulting in a powerful user experience that advances gold from a physical element to an instantly accessible unit of account and store of value for the internet, an operating system for gold.
Soros Brothers Investments is an investment vehicle led by Alexander Soros, the son of billionaire George Soros. Sandstorm Gold provides financing for gold mining companies in the form of a ‘gold streaming’ transaction whereby an upfront cash payment is exchanged for a percentage of gold production from the mine.