Coinbase

Efforts to build better connections to bank customer data, trade digital currency and explore artificial intelligence for security and compliance purposes were some of the biggest draws of fundraising for U.S. startups.

Digital currencies can outlast bitcoin's volatility because they are more egalitarian than the traditional payment system and offer a better alternative for emerging countries, the cryptocurrency exchange says.

Coinbase Inc., one of the largest cryptocurrency exchanges, said it obtained an e-money license in the U.K. as it expands services in Europe. A local subsidiary also opened an account at Barclays Plc, easing deposits and withdrawal for clients.

Dizzying trading in bitcoin fed the bubble argument, but now that Nasdaq is the third Wall Street player to say it is designing a financial instrument around it, banks may be forced to reassess cryptocurrencies.

The startup is betting that a venture offering safe storage of digital assets will entice billions from banks and other institutional investors.