Japanese financial services giant SBI Holdings has invested $15 million in Tangem, a Swiss-based startup that produces a blockchain-powered smart card crypto wallet,
The funding was made through SBI Crypto Investment Ltd., a digital asset venture subsidiary of SBI Holdings, and according to an announcement from Tangem, it will use the money “to accelerate the deployment of its technology in other industries where the secure storage and circulation of blockchain assets has the highest potential,” including cryptocurrencies and stablecoins, ICO / TAO token distribution and digital identity.
“We take the next big step on our mission to bring blockchain to people’s everyday life,” Andrey Kurennykh, co-founder of Tangem, said in a statement. “In 2018, our technology was proven by the markets after we launched the mass production of Tangem cards for crypto currencies and tokens. With this additional investment in 2019, we will be able to extend our product offering in other industries and provide better support to companies which embrace the idea of physical distribution of blockchain assets.”
Tangem’s product is a hardware wallet for cryptocurrencies, which it calls a “smart banknote for digital assets.” Tangem Notes are designed to be used like a bank card, allowing for off–chain physical transactions, which can be used by touching the note with an NFC-capable smartphone to make sure the necessary crypto coins have been uploaded.
“The Tangem hardware wallet, which is highly secure and affordable, is an important tool to promote mass adoption of digital assets and blockchain,” Yoshitaka Kitao, Representative Director, President & CEO of SBI Holdings Inc., said in a statement. “We believe utilizing Tangem will help stipulate the demand for other blockchain services provided by SBI.”
SBI Crypto Investment appears to be ramping up its funding in blockchain-powered startups right now. Per CoinDesk:
In October 2018, SBI Group also partnered with Denmark-based blockchain security startup Sepior to develop a digital wallet for its cryptocurrency exchange VCTRADE. And, last March, the group bought a 40-percent stake in Taiwanese cold wallet maker CoolBitX.
Hardware wallets are an increasingly popular solution for storage of cryptocurrencies as numerous online exchanges have experienced notable hacks. Japan alone lost a massive 60.503 billion yen (around $540 million) worth of cryptocurrency in the first six months of 2018, according to a report from country’s National Police Agency (NPA). Another report indicates that, worldwide, over $880 million have been lost to cyberattacks in the last 18 months.
Meanwhile, Cointelegraph reported last week that SBI’s crypto subsidiary also invested an undisclosed amount in Breadwinner AG, another Swiss-bases digital wallet startup.
Photo: Tangem