Data shows that funds are pouring into blockchain startups

Fintech companies used to focus on making traditional banks obsolete. Now, they appear to be interested only in selling their services to banks.

One of these young companies is the startup itBit, which has a regulatory license in New York that allows it to trade digital currencies such as Bitcoin. The company is developing a product called BankChain that can apply blockchain technology to bank clearing and settlement processes. According to itBit's financing presentation to investors, the company is currently in the process of raising $50 million in financing. The presentation suggests that itBit expects to close the financing this quarter. However, itBit declined to comment.

The itBit funding comes at a time when a large amount of investment has been pouring into startups in recent years, according to PwC.

(Data from PwC)

These startups are developing software for banks that can be used for a variety of financial services, including money and securities transfers, lending and back-office management. Blockchain is essentially a digital ledger that can be used by anyone to store financial records and other data. (BankChain, for example, is a ledger that can only be accessed with permission.) Because the blockchain ledger is built on the Internet, it can be updated in real time and at a low cost. Large banks such as JPMorgan Chase and Goldman Sachs have been exploring blockchain technology, and companies such as DTCC have also begun testing the technology.

In September 2015, blockchain service provider Chain raised $30 million from Nasdaq, Citibank, Capital One Financial, Visa and others. Chain has been working with Nasdaq on a pilot project to issue shares in private companies. Digital Asset Holdings, a distributed ledger software company managed by former JPMorgan Chase executive Blythe Masters, received $60 million in financing from JPMorgan Chase, Goldman Sachs and IBM. Digital Asset also announced a pilot project with the Australian Securities Exchange.

Original article: http://qz.com/662596/startups-are-raising-huge-rounds-to-feed-wall-streets-fascination-with-blockchain
By Ian Kar
Compiled by: Kyle
Source (translation): Babbitt Information (http://www.8btc.com/money-pour-into-startups)