Xpring is Ripple’s developer initiative that focuses its investments in blockchain technology companies and is the firm’s first investment in the bitcoin kiosk industry.
Coinme, which provides kiosks and ATMs for digital currencies, raised $1.5 million in a Series A-1 financing round that included Ripple’s subsidiary Xpring and Blockchain Finance Fund, the company said.
Proceeds from the funding will be used for additional licensing to expand its U.S. and international coverage.
Co-founder and CEO Neil Bergquist told CoinDesk that Coinme is licensed to operate bitcoin ATMs in 29 states and will apply for further state licenses in the near future. As for international markets, Coinme has set its eyes on Europe, Central and South America given the high popularity of cryptocurrencies in these countries, Bergquist added.
Bergquist said Coinme raised $4.5 million in total in its previous financing, including $3.5 million in convertible debt, partly from Coinstar over the last few years, and $1.5 million from a venture fund in early 2017.
With more than 2,500 locations, Coinme currently services the largest bitcoin kiosk network in the world. Coinme began as a bitcoin exchange in 2014 and integrated its services with the coin-to-cash Coinstar machines in January.
The Coinstar kiosks allow customers to exchange bills and coins for a code sent to their mobile device that can be used to redeem up to $2,500 of crypto. The partnership was announced earlier this year with the kiosks mainly placed in public venues such as supermarkets.
Crypto kiosks and Bitcoin ATMs have quickly grown in popularity as coin use proliferates.
Data from Coin ATM Radar shows a nearly five-fold increase in the number of active crypto ATM installations since 2017. Earlier this summer, bitcoin ATM LibertyX surpassed 1,000 kiosks under service.
Outside of the kiosks, Coinme provides concierge trading, high-volume transactions for institutional investors, and cryptocurrency retirement options such as a self-directed IRA and 401(k). Bergquist said one of the services provides white-gloved transaction services to high-net-worth individuals with a minimum investment of $5,000.
The new funding will also go towards developing online wallets for retail investors to help them use cryptocurrencies for payments and remittance.