Israeli blockchain technology company Colu announced today that the company has raised $14.5 million from IDB Development Corporation (TASE: IDBD) as an investment in the company and its CLN (Colu Local Network ) token presale, launched a month ago. The partnership between IDB and Colu creates new opportunities towards connecting the traditional retail market with a rapidly expanding blockchain based payment system. Colu has raised $26.6 million to date including this latest financing.
Colu, which has created a wallet app for digital, localized currencies has been an active player in the blockchain space since 2014. The company’s digital wallet app was launched in early 2017 and is now operating in 4 cities in the UK and Israel with 100,000 users and more than 85,000 monthly transactions. The CLN token will allow any community to create a localized currency and use it as a reward for local consumption made with fiat. By creating a better, more transparent payment system and strengthening the sense of mutual responsibility in the community, the CLN will encourages local spending and help keep more money circulating in the community, thus multiplying the local economic activity.
Colu cofounder and CEO Amos Meiri said, "Partnering with IDB group is a vote of confidence in cryptocurrencies and the role they could play in the retail market. This strategic partnership with a group that has an avid commitment to the community, like we do, represents a big step towards expansion in Israel. We are excited to collaborate with the IDB's team and look forward to making local economies flourish."
IDB Development CEO Sholem Lapidot said, “IDB believes that Colu will help to support the growth of blockchain technology as a real life payment method. We strongly believe that crypto technology will play a key role in the future form of payment for goods and services and we are thrilled to be rolling out plans for increased innovation in our diverse industries, with the help of Colu. This investment, among others, is part of our genuine vision to integrate between the traditional and the new economy, combining customer centric approach with technological progress.
Meiri founded Tel Aviv based Colu in 2014 with VP blockchain Mark Smargon and CFO David Ring. The company has 50 employees.
Published by Globes [online], Israel business news - www.globes-online.com - on December 13, 2017
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