US-based cryptocurrency exchange Bittrex has reportedly acquired a 10 percent share in Malta-based blockchain startup Palladium. In July, Bittrex and Palladium had partnered to launch the world’s first Initial Convertible Coin Offering (ICCO), which aims to be an improved version of the current initial coin offering (ICO) model.
Improved, Regulated Crowdfunding For Crypto
As covered, the ICCO was developed to “give investors peace of mind” as there have now been many scams associated with ICOs. Each token issued to investors using this improved crowdfunding model is referred to as a “convertible warrant” which can be exchanged for shares in Palladium “three years after [its] issue date.”
Through its partnership with Bittrex and e-sports betting platform Unikrn, Palladium had also announced its plans to raise €150 million through the sale of its tokenized securities which started on July 25th and will end on September 30th.
According to the Times of Malta, Unikrn has a 15 percent share in Palladium and Investar Holding Corporation owns 85 percent of the Malta-based blockchain company. Investar Holding is fully owned by Paolo Catalfamo, the CEO and founder of Palladium.
Bridiging The Gap Between Fiat And Crypto
In order to bridge the gap between traditional finance and digital currencies, Palladium aims to become the world’s “first regulated unified platform.” As described on its official website, the company plans to develop a blockchain that “bonds banking with cryptocurrency.”
Palladium’s platform will be designed to offer its clients a “single, unified interface” for managing a diverse set of asset classes while also allowing them “to access a wide array of services denominated both in fiat and cryptocurrencies.”
Other services the platform intends to provide include paying for everyday purchases and bills with crypto or fiat currencies. Commenting on Bittrex’s role and recent investment in Palladium, Catalfamo said that:
“We are excited to have such a global player on board. Bittrex’s investment in Palladium is a confirmation of Malta’s sound decision to be at the forefront of regulating blockchain technology.”
Notably, Bittrex joined the newly established Virtual Commodity Association (VCA) Working Group on August 20th, which is an “industry-sponsored, self-regulatory organization” (SRO) that aims to monitor “virtual commodity marketplaces.”
Other crypto firms participating in the VCA include the Winklevoss-owned Gemini Trust Company, Luxembourg based bitcoin exchange Bitstamp, and US-based crypto exchange bitFlyer.
As CryptoGlobe reported on August 16th, the Ripple company named Bittrex as one of its first three “preferred” digital currency exchanges for Ripple’s xRapid transactions involving USD.
Bittrex and Ripple have also partnered in order to work collaboratively on an initiative that aims to develop a “healthy” business environment for cryptocurrency exchanges. As covered, other partners involved in this project include Mexican digital currency trading platform Bitso and Philippines-based crypto exchange Coins.ph.