Vaurum receives $4 million in funding
Cryptocurrency company Vaurum is developing a high-performance Bitcoin exchange program for financial institutions that has raised $4 million in seed funding from Battery Ventures, Tim Draper, and Steve Case. Vaurum will be using the funding to scale its engineering team and build out its white-label platform for financial institutions.
“There’s a great global demand by investors today to trade virtual currencies, mainly bitcoin, but in practice it’s not very easy for people to do, whether they’re sophisticated institutional investors or underserved populations in developing economies,” stated Avish Bhama, co-founder and CEO of Vaurum. “Most investors –even savvy institutions — need an easy-to-use and compliant platform through which to buy and sell bitcoins, and we provide that solution.”
Vaurum’s software is used at large financial institutions, hedge funds, foreign-exchange dealers, and commodity-trading firms. Vaurum “white labels” its software to these institutions, which lets the firms run their own exchanges and offer Bitcoin trading to their own customers.
Bhama started the company with co-founder Sean Lavine after he worked for several years in the financial markets as a fixed income trader and foreign exchange analyst at Apple. Bhama saw first-hand how global companies often keep profits stored overseas in local currencies because of capital controls and tax liabilities. He realized the need for a new system that could be considered cloud-based money, which could be transferred easily.