Bitbond Secures $1.2-million Funding Round To Grow Bitcoin Lending Product

Bitbond, the P2P lending service for bitcoin users, has announced it has secured a further $1.2 million in funding, the latest vote of confidence in the company that could redefine P2P lending in the near future.

The funding, sourced from a collective of angel investors, allows the company to continue to develop its online platform for lending and borrowing in bitcoin.

Transactions are arranged between investors and lenders, allowing for peer-to-peer lending arrangements through bitcoin to be struck and processed automatically.

The funding round is expected to allow the company to continue to develop its product, while increasing the scale and reach of its service to include both more lenders and borrowers.

The announcement comes at a difficult time for the P2P sector in the bitcoin market, with antiquated regulatory infrastructure providing insurmountable challenges for others in the space.

Competitor BitLendingClub recently announced it was pulling out of the sector based on regulatory challenges, while BTCJam moved operations out of the U.S. for similar reasons.

The latest funding round is hoped to give Bitbond a war chest for tackling these remaining issues head-on, as it continues to strive for a viable, regulatory-compliant product that allows P2P over the bitcoin system.

Radoslav Albrecht, the CEO of Bitbond, said the funding was an important step in the company’s journey to market, which he hoped would help take the product global in the months and years to come.

“The additional resources will help us to continue realizing our mission, which is to make lending and borrowing globally accessible. We are happy to have such experienced investors supporting us on this exciting journey.”

Bitbond has raised a total of over $2 million since it was set up, with the latest investment coming from a range of partners. Led by the founder of Turkish mobile ad network Mobilike, the round also saw personal contributions from the founders of online credit company Kreditech and ad industry startup Fyber.

The company is now keen to get to work with its new resources, as it continues to develop a product that could overhaul the P2P lending model via bitcoin in the near future.