Coinsetter Launches and Announces it is Raising Follow-On Round of Funding

Fresh off the news that BTC China has raised $5 million. Upstart bitcoin trading platform, Coinsetter, has notified its ‘early adopters’ that it is in the midst of raising a follow-on round of funding and is inviting them to participate in the investment. Coinsetter initially made headlines in April when it announced it had received from Barry Silbert’s Bitcoin Opportunity Fund as well as Jimmy Furland. At the time, the firm’s aim was to bring ‘ to bitcoin, through the use of liquidity aggregation technology and low latency execution.

The current announcement comes as the firm made their public launch last week following an extended period of private beta testing (Account sign-ups are still being limited, but live trading is being made available). Following up with the firm in , Coinsetter’s  CEO, Jaron Lukasiewicz stated that the firm was expecting to launch publicly in November. In terms of funding, Coinsetter updated users about its banking partners. For its international customers, Coinsetter stated that they have secured a compliance approved bank account from Sparkasse Bank Malta plc, a subsidiary of Erste Group, one of Europe’s largest financial services providers. In the US, Coinsetter mentioned that they had secured a relationship with a ‘compliance approved’ bank account at a US financial institution to support ACH transfers. Currently though, US customer funding is limited to bitcoin deposits.

In regards to their current round that is being raised, the funds are being earmarked towards supporting their expansion in the US, and as Lukasiewicz mentioned to us in October, the investment “will allow us to build up a 50-state money transmitter licensing, and expand our service offering over time.” In their current letter, Lukasiewicz stated to customers that they were receiving an early invite to invest in the company, in addition to the $100,000 that had already been committed from lead investors. However, funds are only being accepted from accredited investors according to the SEC’s general solicitation guidelines. Deadline for commitments is November 29th. He did add though that they will also be accepting bitcoins.

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