OpenNode Completes $20 Million Series A Funding

UTC by Babafemi Adebajo · 2 min read
OpenNode Completes $20 Million Series A Funding
Photo: Depositphotos

As part of its plans, the firm is also looking to stretch its tentacles beyond Bitcoin and other crypto assets.

Bitcoin payment provider OpenNode has announced the completion of an oversubscribed series A funding of $20 million. The round was led by Kingsway Capital with further investments from Twitter, Tim Draper, and Avon Ventures, a subsidiary of Fidelity Investments.

Funding Round for OpenNode

Following the completion of the round, the payments provider now has a market valuation of $220 million. The funds will be used to drive global expansion efforts.

Commenting on the development, the head of Strategy at OpenNode, Josh Held stated that “the investments are a nod from people who are sought after as great investors and looking at the future of global payments.” Held believes the investments underscore the importance of Bitcoin as a base layer for global payments.

Twitter group product manager, Esther Crawford noted that cryptocurrencies provided an added incentive for people to be involved in the economy. She said, “OpenNode is creating easier pathways for anyone, anywhere to access the digital economy through their seamless integration of bitcoin payments.”

A Growing Global Phenomenon

Founded in 2018, OpenNode has about 14000 users and operates in 120 countries according to the company website. It uses the Bitcoin Lightning Network to provide low-cost payment solutions to businesses. For its efforts, the company charges a flat transaction fee of 1%.

Some of its payment solutions include payment buttons, hosted checkouts, and e-commerce plug-ins. Additionally, the company also plans to add a wallet to increase support for cryptocurrency exchanges.

“With the wallet, we’ll be bolstering our capabilities with things like account-linked debit cards, adding additional local currencies and settlement options and much, much more,” Held noted.

As part of its plans, the firm is also looking to stretch its tentacles beyond Bitcoin and other crypto assets. The company is looking towards educating people on global market trends and how they can participate.

Twitter Support for OpenNode Not Surprising

It is not the least shocking that OpenNode is enjoying such support from Twitter. In September, the social media giant Twitter integrated the Lightning Network into its services through Bitcoin Tips. Additionally, former Twitter CEO Jack Dorsey continues to build products that’ll utilize the Lightning Network at Block.

Apart from Twitter, several other companies have also pitched their tent with the Lightning network. Australian baseball Club, Perth Heat is high on the list as it now pays its athletes in Bitcoin. It also receives payments for its merchandise in the coin.

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