The Bitcoin startups are looking at greener pastures. The expansion of bitcoin and blockchain based technology to mainstream banking and financial sector has opened up new avenues for businesses. Many startups are now pivoting from their initial product offerings and introducing new products and services in order to cater to these new set of requirements.
Chain, a blockchain technology startup based out of San Francisco has become the latest company to switch its services. The company has recently announced that it will be deviating from its initial business model as provider of Bitcoin and Blockchain APIs to a more lucrative enterprise level blockchain solutions. The announcement is followed by the company’s decision to shut down its widely used free bitcoin API service by the end of December.
By shutting down the free bitcoin API service, Chain will be completely focused on issuing digital assets to big fintech companies like Visa, Nasdaq, First Data and more. The company expects the current users of Chain’s bitcoin API to migrate away from their platform to other platforms which offer similar services. As there is no dearth of other similar solutions providers in the market, the applications and platforms using Chain’s bitcoin API should find it easier to migrate to other alternatives.
Some of the major clients of Chain includes Nasdaq and Visa who also happen to be its investors. Earlier in September, Chain raised $30 million in equity funding from a syndicate of fintech companies. The syndicate included Visa, Nasdaq, Citi Ventures, Capital One, FiServ and Orange. These companies also form Blockchain Working Group in Chain.
Chain will be offering its expertise in the form of blockchain based products and services to these fintech companies which are on the path of incorporating blockchain technology into their operations. However, Chain will continue offering its bitcoin API services until all its customers have successfully migrated to alternative platforms.