European cryptocurrency banking platform Bitwala, previously known as Nuri, is making a comeback after suspending its operations and returning customer funds last year.
Bitwala is relaunching its services under its original name through a partnership with Striga, a banking infrastructure company. This collaborative effort, as announced on November 8 to Cointelegraph, will enable Bitwala to leverage Striga’s “Banking and Crypto-as-a-Service,” allowing the crypto banking app to access trading and card-issuing capabilities, according to Bitwala CEO Dennis Daiber.
Bitwala, which rebranded as Nuri in 2021, faced insolvency in August 2022 due to liquidity challenges caused by the cryptocurrency market downturn triggered by the Terra crash. The company ultimately ceased its operations in October 2022 and requested its 500,000 users to withdraw their assets before the year-end deadline.
Dennis Daiber explained, “We wanted to build a bank. We had all the necessary documentation, audits, applications, and approvals – the only missing piece was 50 million euros for liquidity coverage ratio and runway.”
He added that they had also expanded their team optimistically but faced difficulties when potential investors held back due to market events involving Celsius, FTX, Terra/Luna, and Ukraine, which led to a shortage of funds.
According to the announcement, the Striga partnership has resolved one of Bitwala’s primary challenges by providing compliant digital assets and banking infrastructure “without the need to handle any regulatory burden.” Striga, founded in 2018, offers financial services infrastructure to crypto and banking companies and is incorporated in Estonia as a subsidiary of Lastbit, a Delaware-based company in the United States.
The Bitwala app is immediately available in 29 countries within the European Economic Area, allowing users to purchase and sell Bitcoin (BTC) and Ether (ETH) using Single Euro Payment Area transfers. Future plans for the platform include integrating the Lightning Network and introducing a crypto-backed Visa debit card, all of which are being developed in collaboration with Striga.
The return of Bitwala signifies a significant milestone in the company’s history, as it has encountered numerous challenges since its founding in Germany in 2015. Bitwala is renowned for its partnership with the now-bankrupt crypto lender Celsius, offering annual interest on Bitcoin in 2020.
Bitwala CEO Daiber emphasized that the relaunched product is centered around the self-custodial Wallet, which provides 100% secure self-storage of users’ crypto assets. Daiber added that their focus is on facilitating everyday Bitcoin usage through on- and off-ramps, as well as the forthcoming Visa card, set to launch later this week.