Wall Street Goldman Sachs emerged as the lead invertor of the $58 million Series B funding round in crypto custodian BitGo. Post this Series B funding round, BitGo has managed to raise a total of over $70 million. This funding also saw participation from Galaxy Digital Ventures, a cryptocurrency fund founded by hedge-fund titan Mike Novogratz. According to the report from Bloomberg, Galaxy Digital and Goldman Sachs together invested a total of $15 million.
The investments coming from two big institutions will further help BitGo to attract wealthy investors and big institutions to adopt its custodian solutions. In an interview with Bloomberg, BitGo co-founder and CEO talked about conquering the existing fears of crypto investments.
“If you were investing in any other asset class, you’re probably not worried about the asset just disappearing — but this one, people still have that fear,” said Belshe.
Last month itself, BitGo received a regulatory approval from to offer qualified cryptocurrency custody solutions. BitGo ensures a higher safety for its investor’s through its security, compliance, and custodial solutions. Found back in 2013, BitGo has established good relations with several cryptocurrency exchanges across the globe.
Currently, the crypto custodian claims to secure more than $2 billion of customer assets in wallets. With the recent funding boost from the Wall Street giants, BitGo is now targetting $1 trillion in assets.
Mike Belshe, CEO, BitGo, says:
“No one is better positioned than BitGo to serve institutional investors who want to trade cryptocurrencies and digital assets. That’s why we’re focused on figuring out what it takes to secure a trillion dollars. The market’s not there yet but our job is to be ready first.”
Goldman Sachs’ Involvement in the Crypto Market
Wall Street giant Goldman Sachs has a huge affinity for crypto markets since long. The banking giant is well-known for supporting popular cryptocurrency exchange like Circle. Goldman Sachs recently invested in a Google-backed Bitcoin payments platform Veem. Furthermore, it was the first Wall Street bank to clear Bitcoin Futures launched last year.
Goldman Sachs spokesman Michael DuVally believes that safe and secure custody solutions are the current demand of the crypto market. Additionally, Rana Yared, a managing director of Goldman Sachs’ Principal Strategic Investments group, expressed optimism on the company’s latest investment in BitGo.
“Greater institutional participation in the digital asset markets requires secure and regulated custody solutions,. We are impressed by BitGo’s product, unique services, and the management team. We view our investment in BitGo as an exciting opportunity to contribute to the evolution of this critical market infrastructure.”
Earlier this week, financial service giant Fidelity Investments also announced to launch an institutional grade trading platform and custodian solution. The company is likely to start these services in next year, 2019.