Betterment, a cryptocurrency platform, is partnering with the Financial Services Authority (FSA) to fund its blockchain investments, the company announced Wednesday.
The blockchain-based investment platform, which launched in 2015, is backed by the investment firm’s own capital and has a valuation of around $1.6 billion, according to a news release.
The FSA is looking to “provide blockchain technology to help improve financial services, such as the way we process payments and processes our money and how we pay for goods and services,” the release said.
The news release did not provide details about how the fund would use the funding.
Betterment currently holds around $10 billion in its portfolio of securities, including some securities with exposure to cryptocurrency.
A spokeswoman for the FSA said in an email that the regulator is “excited about the potential benefits of blockchain technology for the financial services industry.”
“The FSA welcomes blockchain technology, and is exploring ways to use it for banking and other types of finance,” the spokesperson said.
“The FSA looks forward to developing further partnership with companies that use blockchain technology in their operations and for our wider regulatory and legal frameworks.”
The news of Betterment’s partnership with the FSA comes on the heels of the FSA’s recent approval of the initial coin offering (ICO) of a cryptocurrency-based company called CoinShares.
The FSA is reviewing CoinShares’ application to allow it to be a registered investment adviser and is reviewing whether to require a “minimum level of risk management” for the company, the Fsa said in a statement.
According to the FSA, the ICO of CoinShares is intended to be the first of many ICOs.
“This ICO will give people the opportunity to buy, sell, or exchange cryptocurrency, creating an opportunity to invest and create wealth, the FSA says.
The FSA has issued regulations for ICOs in the past, including requiring a minimum investment of $50,000 for a single coin to be registered.