Bitwala Returns With Striga Partnership
Bitwala, the European cryptocurrency banking platform, is making a comeback after stopping its operations and returning customer funds last year. The firm has partnered with Striga to provide “Banking and Crypto-as-a-Service,” which will allow the app to utilize trading and card-issuing functionality, according to Bitwala CEO Dennis Daiber.
Bitwala, previously known as Nuri, filed for insolvency in August 2022 due to liquidity issues during a massive crypto bear market triggered by the Terra crash. The company ceased operations in October 2022 and requested its 500,000 users to withdraw their assets by the year-end deadline.
Daiber explained that they had all the necessary approvals and documents to build a bank but lacked 50 million euros for liquidity coverage ratio and runway. Unfortunately, challenges such as fundraising issues and external events caused investors to refrain from investing, leading to a financial crisis.
Striga Partnership and Future Plans
The partnership with Striga addresses Bitwala’s challenges by providing compliant digital assets and banking infrastructure without the need to handle regulatory burdens. Striga offers financial services infrastructure for companies in crypto and banking, providing immediate access to the Bitwala app in 29 European Economic Area countries for buying and selling Bitcoin (BTC) and Ether (ETH) using Single Euro Payment Area transfers.
Future plans include integrating the Lightning Network and introducing a crypto-backed Visa debit card, developed in collaboration with Striga. This marks a significant milestone for Bitwala, which faced numerous challenges since its founding in Germany in 2015.
Crypto-First Focus
The relaunched product focuses on self-custodial Wallet, offering secure self-storage of users’ crypto. According to Daiber, Bitwala will prioritize enabling everyday usage of Bitcoin through on- and off-ramps as well as launching a Visa card later this week.
Hot Take: Bitwala’s Revival Marks Major Milestone
The return of Bitwala with the Striga partnership marks a major milestone for the firm after facing challenges that led to insolvency last year. With a renewed focus on providing essential crypto banking services while addressing previous liquidity issues, Bitwala aims to regain trust and offer seamless access to digital assets for its European user base.
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