Defence mechanisms

21 January 2015 By Dominic Elliott

The Spanish bank’s ventures arm is backing Bitcoin marketplace Coinbase, alongside tech investors and a stock exchange. BBVA has been a pioneer in digital banking, but Bitcoin aims to disintermediate lenders. That suggests BBVA’s outlay is more hedge than long-term investment.

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BBVA was one of several corporate, individual and tech investors to take part in a $75 million funding round for Bitcoin marketplace Coinbase, the corporate venture arm of the Spanish bank said on Jan. 20.

BBVA Ventures, which is based in San Francisco, did not disclose the size of its investment in Coinbase, which provides Bitcoin wallet services for consumers and processes Bitcoin payments. The venture capital unit was set up 12 months ago with $100 million to invest in companies that are aiming to change traditional financial services. It has invested in two VC funds as well as four other companies.

BBVA’s Coinbase investment was made alongside the New York Stock Exchange, USAA Bank, Citigroup Chief Executive Vikram Pandit, former Thomson Reuters CEO Tom Glocer and tech investors including Andreesen Horowitz. Coinbase has now raised $106 million.

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