E-commerce and financial technology company Rakuten has acquired the assets of one of its portfolio companies, US-based digital payment platform Bitnet Technologies, for an undisclosed amount.
Founded in January 2014, Bitnet operated a digital payment platform that was powered by blockchain, the database technology behind cryptocurrencies like bitcoin.
The company’s technology was incorporated into Rakuten’s platforms in July 2015, but the startup had struggled to grow and had reportedly halved its workforce prior to the purchase.
Rakuten took part in a $14.5m series A round for Bitnet in late 2014 that included Highland Capital Partners, Commerce Ventures, Webb Investment Network, Bitcoin Opportunity Fund, Stephens Investment Management and Buchanan Capital Management.
The acquisition was announced at the same time as the Rakuten Blockchain Lab (RBL), due to open in Belfast, UK today. RBL will function as a research and development subsidiary focusing on blockchain technology and how it can be used in fintech and e-commerce.
Yasufumi Hirai, head of Rakuten’s Technology Division, said: “Drawing on the significant IP assets and deep engineering expertise of the Bitnet team and combining that with Rakuten’s leadership in fintech and support of innovative solutions, the new Rakuten Blockchain Lab will be our first step toward unlocking blockchain’s potential to revolutionise the way that financial and e-commerce transactions are conducted.”