Canadian Crypto Exchange Coinsquare has acquired a controlling investment in Just Cash, a United-States-based fintech startup that has developed a technology which enables customers to buy Bitcoin through regular, non-bank operated ATMs. The latest news was shared in a press release on July 3.
The firm has invested "eight figures" in the latest partnership, Kalman Gabriel, head of the business development at Coinsquare stated. Coinsquare hasn't announced further details about the partnership.
Just Cash has built software to update ATMs to sell cryptocurrencies through a customer's debit card, without any need to update the machine's hardware.
Coinsquare CEO Cole Diamond mentions that the latest move falls in line with the company's mission of bringing mainstream adoption to the crypto industry. As per Diamond, allowing crypto purchases via ATMs will make cryptocurrency to reach the masses finally.
Even though the press release doesn't mention how many ATMs Coinsquare is planning to upgrade, the startup can provide crypto capabilities for millions of currently running ATMs around the world.
Cole Diamond says,
“By using the millions of existing ATMs around the world, we can now bridge the gap and give new users the easiest and most familiar experience to purchase cryptocurrency. Bitcoin is new and unfamiliar to many, but ATMs are not.”
Diamond further said that the technology had been installed in some of the ATM machines and the process will continue till the end of this year.
Currently, there are around 250,000 non-bank ATMs which can potentially be upgraded with the software. The firm has teamed up with two of the three major producers of non-bank automated-teller machines, even though the firm has not disclosed the names of the firms. Coinsquare hopes to install this service in around 170,000 machines in about 50 US states.
“We will outnumber the total number bitcoin ATMs within a year,” Diamond said.
Users will be able to buy and sell bitcoin, bitcoin cash, ether, dash, litecoin, stellar, ripple, etc. instantly from their bank accounts. The machine will then provide a printed receipt which displays the user's public and private keys "effectively your paper wallet" Diamond said.
The firm's roadmap includes a full US expansion in 2020, along with ATMs serving as an entry point. Diamond expects that the ATMs to serve as a competent on-ramp to the crypto-uninitiated.
Just Cash will proceed to operate independently under the Coinsquare brand. The latest initiative comes after Vancouver is continuing a ban on Bitcoin ATMs, because of their ties with money laundering. Previously, Coin square declared the release of its own stablecoin, eCAD, linked to the Canadian dollar. The firm has also dismissed 40% of its employees, around 30% of its staff in February.