In a statement issued by LBX CEO and founder Ben Dives he said that LBX hopes to bring cryptocurrency investment into the mainstream.
A London based start-up is launching a new debit card that it claims to give users the ability to spend cryptocurrencies across the UK. The London Block Exchange (LBX) launched on Tuesday and it is believed that the company is backed by a Credit Suisse veteran.
LBX as revealed its plans to launch a sterling-to-cryptocurrency exchange this week. Along with an app will be a Visa debit card which is called Dragoncard, that will allow users to spend Bitcoin, Monero, Litecoin, Ethereum and Ripple across the UK. The start-up also plans to add more cryptocurrencies in future.
The card issued by pre-paid card provider Wavecrest will be linked to an app. This will allow users to buy and hold cryptocurrencies. The process will be managed through the LBX exchange. Wavecrest is based in Gibraltar and according to reports customer cash withdrawals will also be possible using the card by converting various cryptocurrencies to sterling.
In a statement issued by LBX CEO and founder Ben Dives it states the London is a difficult place for investors of cryptocurrencies. This despite it being the financial capital of the world. He said that LBX hopes to bring cryptocurrency investment into the mainstream. And it plans to do this by removing the access barriers to help people understand what they believe is the future of money.
It is also hoped that the card will bring confidence to the cryptocurrency market. To date, LBX has raised £2-million from a conglomerate of private investors. The company refused to name their investors. Before venturing into LBX earlier this year, Dives was the founder of Ideaflip.
Former Credit Suisse and UBS banker Adam Bryant has also been appointed as the executive chairman for LBX. He previously spent 18 years at Credit Suisse and a further two years at UBS before he finally joined LBX. Bryant was the manager for the macro hedge fund teams at both banks.
In a statement, he said that the offering by LBX was both a grown up and robust experience. He also said that it would be for anyone who wishes safely and easily invests in digital currencies. He aims for LBX to become the leading cryptocurrency and blockchain consultancy institution.
Customers will be charged a fee of 0.5% for buying and selling cryptocurrencies through the platform. It should also be noted that the Dragoncard has an initiation fee of £20. LBX has said that Wavecrest will also be charging a fee for ATM withdrawals.
The launch of the card follows an explosion of interest in cryptocurrency.
Bitcoin alone as rocketed over 500% so far this year while the total cryptocurrency market has ballooned to close to $200 billion. This can be attributed to the popularity of initial coin offerings.
LBX might be one of the first companies offering a cryptocurrency card in the UK but is likely to face competition soon. Revolut is also in the process of developing cryptocurrency trading capacities which may soon also include spending the currencies on a prepaid card.