With increasing attention on bitcoin and blockchain technology, investors and investment firms have started to find the sector more lucrative than before. Many well-known firms have started pitching in their bucks behind the decentralized ledger technology, some of them through other investment firms like Digital Currency Group.
According to recent reports, the Bitcoin and Blockchain technology-focused investment group led by Barry Silbert has received investments from the Western Union, HCM International Company, Gibraltar Ventures, and other investment firms. Some of the other firms investing in bitcoin and blockchain technology based startups through Digital Currency Group include OMERS Ventures, Horizon Kinetics, Kingsbridge Wealth Management and Wood Investment Partners.
It is not a surprise to see the Western Union showing interest in bitcoin and blockchain technology as the digital currency based remittance platforms are in a position to offer cross-border fund transfer services at attractive fees compared to it. The Western Union and its counterpart MoneyGram have been accused of ripping off their customers by charging exorbitant transaction fees on international remittance of funds. They are now in a position where they have to either innovate fast or risk losing a major chunk of customers. By adopting blockchain solutions for remittance of fiat currency, they may stand a chance against the digital currency based platforms.
In other news, Digital Currency Group has also made some changes to its management structure by including new board members and advisors. Lawrence Summers, the former treasury secretary, and president of Harvard University, Glenn Hutchins from Silver Lake private equity firm, Lawrence Lenihan and Gavin Andresen figure in the list of new additions to DCG.
DCG has an extensive portfolio of bitcoin and blockchain technology based companies spread across more than 20 countries. It makes strategic sense for the investment firms to invest in the digital currency domain through Digital Currency Group, which has a better understanding of the market segment than doing it all by themselves.