UPDATE 9th July 0:00 UTC: BitGold has indicated that while it uses blockchain technology, it has pivoted from a focus on bitcoin.

Canadian digital currency startup BitGold has successfully closed a $3.5m Series A funding round.

Participants in the round included PowerOne Capital, Soros Brothers Investments, Sandstorm Gold and PortVesta Holdings. Notably, the man behind Soros Brothers Investments is Alexander Soros, the son of billionaire investor George Soros.

The Toronto-based company offers a consumer-focused Internet platform for global blockchain payments, alongside access to secure and redeemable gold for savings.

BitGold

raised angel funding from its own co-founders Josh Crumb and Roy Sebag earlier this year.

BitGold

says its mission is to provide “global access to gold for secure savings and transactions”, while at the same time offering digital payments based on blockchain technology.

Crumb said blockchain technology has already unleashed a wave of payments innovation that will empower people around the world by lowering costs and offering more access to safe and transparent financial services.

He explained:

Sebag, BitGold's CEO, said technological breakthroughs in decentralised payment technologies such as the blockchain and Ripple have created a historical opportunity to make gold a useful means of payment in daily transactions.

“Since my days as a professional investor I have wondered why there’s no easy way to own and spend gold in a legal, transparent, and tax-compliant manner,” he said.

"True" gold ownership requires the precious metal to be safely vaulted and stored, he said, making it extremely difficult to spend, especially in microtransactions.

He continued:

PowerOne Capital Markets Ltd

managing director Pat DiCapo confirmed that the company participated in the funding round.

He indicated that PowerOne has been a major participant in the resource sector for years, providing financing and advisory services involving billions of dollars to hundreds of companies.

Regarding the latest investment, he said:

Nolan Watson, Sandstorm CEO and chairman, also confirmed participation in the Series A round.

“I am of the firm belief that with recent advances in payment technology, that we are the first generation that will have the option to easily and conveniently use gold as money,” he said. “BitGold, in our opinion, is creating the best in class platform to make that happen. We at Sandstorm are very keen supporters of their efforts.”

The idea of combining blockhain technology and gold is not new and many proposals aimed at effectively digitising gold have been floated in the past. Bitcoin Bullion, DigitalTangible and Amagi Metals all offer different forms of gold-to-bitcoin trading platforms.

Gold image via Shutterstock