Bitwala is a cryptocurrency banking application provider hailing from Europe that was titled Nuri. The app is now preparing for a relaunch after it went defunct in 2022. The firm has signed a deal with Striga, a banking infrastructure company and changed its name to Bitwala. The firm issued a joint announcement to the media.
As part of the partnership deal, Striga will offer crypto-as-a-service and banking options to Bitwala. In this manner, the cryptocurrency banking application will offer trading and card-issuing features as per CEO Dennis Daiber.
Bitwala was renamed Nuri in 2021 and filed for bankruptcy in 2022. The firm was facing liquidity issues and a bear market that was stemming from Terra Luna de-pegging. The company shut down its operations in October 2022. The 500K account holders of Bitwala received a notification from the bank to withdraw their assets before the December 2022.
The firm noted that it wanted to create a bank and has collected all the required documents, audits, and permits. However, the firm was in the process of procuring 50 million euros to cover their liquidity ratio and runway costs.
Bitwala CEO Briefs the Media Regarding Collapse and Relaunch
Talking to the media, Daiber stated that the firm has hired employees to work in the new positions in the crypto banks. At the height of its performance, the company had 250 employees.
However, when the fundraising process was underway, the incident of Celsius, FTX, Terra/Luna, and Ukraine took place. This created an environment that prevented investors from participating in the new company. Therefore, the firm ran out of sufficient funds to operate the organization.
The new venture has announced that Striga and Bitwala are going to address the main issues namely issuance of digital assets and banking infrastructure. The new partnership will allow the firm to continue to offer these services without worrying about regulatory issues.
Striga has been operational since 2018 and offers crypto and banking infrastructure for other firms in the same sector. The firm is based in Estonia and is operating as a subsidiary of Lastbit that is based in Delaware, United States.
Bitwala to Offer Services in 29 Nations
Bitwala application is going to offer services in 29 nations inside European Economic Area. The investors hailing from the region will be able to trade Bitcoin and Ethereum in exchange for euro via Single Euro Payment Area channel.
The statement has further informed that the firm is planning to integrate the Lightening Network and issue a crypto-backed VISA debit card. The card-payment option will be issued in association with Striga.
Bitwala relaunch is seen as a major milestone. The firm was founded in Germany in 2015 and is known for partnership with Celsius. Celsius is a crypto-lender that filed for a bankruptcy in 2020. Bitwala was working with Celsius to issue yearly interest for Bitcoin in 2020.
Daiber claimed that co-founder Jan Goslicki are working on Bitwala project since 2018. He noted that the project offers self-custodial wallets that provide 100% secure custodial services for cryptocurrency investors.
Daiber claimed that the firm is going back to the roots of Bitwala first version in 2015. The firm is now not focusing on become a major bank or operate complex business structure. The CEO further explained that Bitwala is going to focus on everyday utility of Bitcoin using on and off-ramp methods such as Visa card that is set to launch next week.