5 Tales from the Crypto: Pillow Raises $18 Million; BlueSnap and BitPay; Coinbase and Google


Cryptocurrency Investment Platform Pillow Raises $18 Million

In a round co-led by Accel and Quona Capital, crypto investment platform Pillow has secured $18 million in Series A funding. Also participating in the round were Elevation Capital and Jump Capital.

Singapore-based Pillow enables individuals to save and invest in a variety of major cryptocurrencies. The company will use the capital to power expansion of its cryptocurrency savings and investment services into emerging markets in Africa and Southeast Asia. Pillow already operates in Nigeria, Ghana, and Vietnam. This week’s funding adds to the $3 million in seed capital Pillow secured earlier this year.

Founded in 2021, Pillow has more than 75,000 users in more than 60 countries on its app. Among the cryptocurrencies available are: Bitcoin, Ethereum, Solana, Polygon, and Axie Infinity, as well as USD-backed stablecoins, USDC and USDT. Pillow plans to support more than 20 different digital assets over the next few months. The company offers returns of more than 10% on its stablecoins and approximately 6% on Bitcoin and Ethereum. Pillow earns its money by investing user funds in DeFi protocols on blockchain networks.


BlueSnap and BitPay Team Up for Crypto Acceptance and Payout

Payment orchestration platform BlueSnap announced a new partnership this week. The company is teaming up with cryptocurrency payments company BitPay to enable businesses to accept and make payouts in as many as 15 different cryptocurrencies – as well as seven fiat currencies. The currencies available include leading digital assets such as Bitcoin, Ethereum, Litecoin, Ripple, and Dogecoin. Five stablecoins pegged to the U.S. dollar and one stablecoin pegged to the Euro will also be supported.

Courtesy of the partnership, customers will be able to accept cryptocurrencies and be paid out in fiat currencies including the U.S. dollar, the Euro, the British pound, and the Mexican peso, as well as the Canadian, Australian, and New Zealand dollars.

BlueSnap and BitPay noted in a statement that a growing number of retailers are accepting cryptocurrencies as payment, and that consumers were becoming increasingly “crypto curious.”

“By working with one of the most well-respected crypto companies in the industry, we’ll be able to make the new payment experience as frictionless as possible,” BlueSnap Managing Director for Europe Nihkhita Hyett said. “We look forward to making a real impact in this new space – through developing technologies like blockchain and cryptocurrency – as we foster greater innovation in payments, and further our growth across Europe.”


WSJ: NYDIG Lays Off a Third of its Workforce

According to reporting in the Wall Street Journal, institutional cryptocurrency custody firm NYDIG has laid off more than 100 of its workers, an amount believed to be approximately a third of the New York-based crypto firm’s total workforce. The layoffs took place over a number of weeks per the Journal’s sources, and come almost a year after NYDIG raised $1 billion in funding at a valuation of more than $7 billion. NYDIG mentioned using the capital to “further expand its world-class team across the globe” – though this was noted toward the end of the company’s funding announcement. Using the capital to “develop NYDIG’s institutional-grade Bitcoin platform” was noted in paragraph two.

More recently, NYDIG was in the headlines for the C-suite shuffle in October that had CEO Robert Gutmann and President Yan Zhao stepping down and returning to NYDIG’s parent company Stone Ridge Holdings. Gutmann and Zhao co-founded Stone Ridge, along with Ross Stevens, in 2012.

There has been no comment on the lay off report from NYDIG at this time.


Mastercard Teams Up with Blockchain Platform Paxos

Our last edition of 5 Tales highlighted Mastercard’s new Crypto Secure solution that helps card issuers assess the risk profile of crypto exchanges and other providers.

This week we share more news of Mastercard and its business in the crypto space. The company has announced a partnership with blockchain infrastructure platform Paxos that will enable financial institutions to offer secure cryptocurrency trading capabilities to their customers. Mastercard’s Crypto Source program will give its financial institution partners access to a suite of services that will enable them to buy, hold, and sell select crypto assets.

The suite of services provides technology and partnership support to enable FIs to buy, sell, and hold select digital assets; security management, including AML, transaction monitoring, and KYB; crypto spend and cash out capabilities; and crypto program management, including go-to-market optimization.

“What we are announcing today is a connected approach to services that will help bring the next billion users safely and securely into the crypto ecosystem,” Mastercard President, Cyber & Intelligence, Ajay Bhalla said.

Mastercard demoed its technology at FinovateFall 2017. More recently, the company demoed in partnership with Strands at FinovateSpring 2019.


Coinbase Expands in Europe – And Adds a Friend in Google

Cryptocurrency exchange Coinbase has had more than its fair share of less than pleasant news over the past few days. Today we read headlines about the company experiencing the largest outflow of Bitcoin since June. This follows reports of hundreds of Coinbase users in the Republic of Georgia who allegedly profited from a pricing glitch – and what Coinbase may have to do to get the money back.

Meanwhile, the San Francisco-based company continues to grow, expanding its operations in Australia earlier this month with a pair of new features. PayID will enable Australians to top up their Coinbase accounts directly with Australian dollars. Retail Advanced Trading will give local clients access to low volume-based pricing and trading tools with one unified balance.

And earlier this week, Coinbase introduced the man who will lead the company’s expansion in Europe: former Solarisbank Chief Operating Officer Daniel Seifert. The appointment comes as Coinbase gains momentum in the region, earning regulatory approval to offer its services to customers in Italy in July and the Netherlands in September. Coinbase VP of International and Business Development Nana Murusegan has called international expansion an “existential priority.”

But the biggest news of the week for the company is the announcement that Google has partnered with Coinbase to allow select customers pay for cloud services via cryptocurrencies starting early next year. The capability will be made possible thanks to an integration with Coinbase Commerce, which supports 10 cryptocurrencies including Bitcoin, Ethereum, Dogecoin, and Litecoin. Coinbase will earn a fraction of each transaction processed, according to the company’s VP of Business Development Jim Migdal.

Coinbase made its Finovate debut in 2014. More than 100 million individuals and companies use Coinbase’s technology to buy, sell, and hold cryptocurrencies.


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