There are a number of Bitcoin exchanges out there today, but a new startup called itBit hopes to legitimize the market by providing bank-like security and compliance.
This newest Bitcoin exchange has raised $3.25 million in a funding round co-led by Canaan Partners and RRE Ventures, with participation from Liberty City Ventures, as well angel investors such as Jay W. Jordan II and Ben Davenport. To date, it’s raised $5.5 million.
itBit seeks to differentiate from many of the more consumer-focused exchanges out there by providing a higher level of security and compliance than some other options. The hope is that by doing so, it will be able to attract interest from traditional financial organizations, in addition to a growing number of retail investors.
The idea is that by offering a higher level of service and security, itBit will be able to service institutional investors and make trading in Bitcoin not that different from more traditional currency exchange.
Today, it trades between Bitcoin and U.S. dollars, Singapore dollars, and Euros, and is built to handle trading volume at an order of magnitude greater than Bitcoin is traded at today. Using Nasdaq exchange technology, it is able to support millions of trades per second and provides 24/7 customer service.
itBit also boasts a multi-factor authentication and DDOS attack mitigation, while also trying to provide enhanced liquidity in its marketplace. It screens and monitors for suspicious activity and has identity verification also built in.
With headquarters in Singapore, itBit is in full regulatory compliance there and is available to institutional investors globally. It’s also available to retail Bitcoin investors in all markets except the U.S. The company has 13 employees distributed around the world, and plans to invest in expanding its operations and offerings, while getting further regulatory approval.