Canadian-based cryptocurrency exchange platform Coinsquare has announced the acquisition of a controlling stake in the United States-based Fintech startup Just Cash, according to a press release.
The acquisition was aimed to get ahold of the proprietary software developed by Just Cash, whose tech enables traditional ATMs to sell cryptocurrency, with no hardware installations or modifications required. In addition to that, there are no additional costs to the operator.
Following this acquisition, Coinsquare will now be able to offer users the chance to utilize their debit cards on ATMs to make digital currency transactions.
The technology works similarly to any other debit card transaction. After the consumer inserts their debit card into the ATM, they are given the option to withdraw cash or to purchase one of several cryptocurrencies, including BTC. Upon approval of the transaction, the ATM prints out a receipt with a public key, a private key, and a QR code.
Coinsquare CEO Cole Diamond believes crypto-friendly ATMs are key to making digital assets accessible to the masses. He claims there is a lack of mainstream cryptocurrency assimilation at the moment due to the fact that many are intimidated by the process needed to acquire it.
“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. By tapping into the existing global ATM network, cryptocurrency can finally reach the masses. We are bringing that familiar and trusted process into the cryptocurrency world, and vice versa, for the first time.”
He further stated that the company is hoping to license its software to the millions of ATMs around the world.
The exchange platform stated that it plans to launch the service globally, starting with the U.S. The company claims it has partnered with three major producers of non-bank ATMs – which remain undisclosed. There are approximately 250,000 non-bank ATMs that can be potentially upgraded with this feature. Coinsquare believes this will open the doors to installing the service on some 170,000 machines, or half of all the non-bank ATMs across the US by the end of next year.
“We will outnumber the total number bitcoin ATMs within a year,” Diamond said.
CEO Diamond further claimed that this feature will bridge the gap between traditional banking and the crypto industry; however he does not expect to integrate the software with bank partners anytime soon.
Meanwhile, Just Cash will continue to operate independently under the Coinsquare. The news follows reports that Vancouver is considering a ban of Bitcoin ATMs due to their ties with money laundering. Earlier this year, Coinsquare announced the launch of its own stablecoin – eCAD – pegged to the Canadian dollar.