An online Bitcoin-based cash transaction broker has gone on sale for the first time, raising more than $5m to help cover a major capital outlay.
CoinBase, a Bitcoin-focused bitcoin exchange that has about 30,000 customers, announced the launch of its bitcoin-based trading platform in January, and now it has launched a cash-only option as well.
The platform allows users to buy and sell bitcoin-denominated cash through a virtual currency exchange, which allows users access to cash balances of $100, $200, $500 and $1,000 in the past 24 hours.
The company also plans to offer other cash options for consumers to buy or sell bitcoins, including cash options with interest rates as low as 0.25%.
The service will also allow users to send cash to a friend or relative for a $10 deposit.
Coinbase CEO Patrick Byrne, a former senior investment banker at Goldman Sachs and JPMorgan Chase, said: “This is the first of many bitcoin-powered transactions that will become available on CoinBase.”
“In the coming weeks, we plan to introduce other ways to make money, including direct deposit and direct withdrawal from bank accounts and credit cards, in an effort to better serve our customers,” he added.
“As the Bitcoin community grows, it will continue to grow.”
The company said that users would be able to purchase cash, gold and other commodities with bitcoins for cash-based transactions in the future.
“Bitcoin Cash is the next step in an evolution of Bitcoin as a payment method, and we are excited to see it integrated into CoinBase’s platform,” said Byrne.
CoinCash is based in Hong Kong and has been used by users to purchase bitcoins, ether and other cryptocurrencies.
It was launched in March and is available to CoinBase users worldwide.