Blockchain, a bitcoin wallet start-up, has raised $40 million led by venture capital firm Lakestar, Google's investment arm GV, and billionaire Richard Branson, the company said on Thursday.

The investment comes at a time of rising interest in cryptocurrencies, especially which recently hit a record high and has seen a massive rally since the start of the year.

Blockchain has created a bitcoin wallet which is essentially a piece of software to store the digital currency and carry out transactions with other users.

The money will be used to expand the team further and invest in more research and development, Blockchain CEO Peter Smith, told CNBC on Thursday. In addition, the start-up is looking to open new offices in different countries to expand.