Twitter Co-Founder-Backed FinTech Startup Rolls Out Bitcoin Banking App
Mode, a financial services firm backed by Twitter co-founder Biz Stone, has rolled out its Bitcoin (BTC) banking app on iOS devices.
The British company made its app available globally, with the exception of the United States, fintech-focused media outlet Finextra reported on Feb. 4. Customers can start using the app with as much as £50 ($65) and buy Bitcoin with bank cards or through a bank transfer. The funds are further processed through digital assets custodian BitGo.
Mode addresses speed and security issues
The app ostensibly allows users to credit funds almost instantly by means of a Faster Payments process. Ariane Murphy, head of communications and marketing at Mode, said that “the Mode app addresses transaction restrictions issues, low speed/high cost, lack of security and most importantly, tackles the poor user experience typically associated with Bitcoin apps.”
Prior to using the app, Mode requires that users undergo a Know Your Customer procedure, which is carried out by AI-enabled identity verification technology.
Founded in 2018, Mode — whose parent company is UK-based fintech firm R8 Group — opened a waiting list for the app last October, initially making it available via invitation only.
Speed issues still plague the Bitcoin blockchain
Industry players have long been in search of ways to speed up slow Bitcoin transactions. The Bitcoin Lightning Network adds an additional layer to Bitcoin’s blockchain, enabling users to create payment channels between any two parties on that extra layer. This ensures almost instant transactions, with extremely low or even non-existent fees.
Recently, a group of researchers at the Massachusetts Institute of Technology revealed a new solution, which is able to notably reduce Bitcoin blockchain-based transaction times and even boost profits.