By
Chimamanda U. Martha
April 24th, 2024
NYDIG has gained major market traction by offering crypto services to institutional players. It specializes in a wide range of Bitcoin financial services such as trading brokerages, savings account, 401 (k), etc.
On Tuesday, December 14, New York Digital Investment Group (NYDIG) announced that it has raised $1 billion in a recent funding round led by WestCap. Besides, there was also participation from prior leads Bessemer Venture Partners and FinTech Collective. The company raised the recent funds at a valuation of $7 billion. NYDIG also said that it will use these funds to accelerate the growth of its institutional-grade Bitcoin platform. It will also include the recent upgrades to the Bitcoin protocol with capabilities like asset tokenization, Lightning payments, and smart contracts. Speaking of the development, Robert Gutmann, co-founder and CEO of NYDIG said:
“The prospects for both NYDIG and Bitcoin have never been more exciting. Our roster of partnerships and strategic investors lays the foundation for NYDIG to become the leading provider of Bitcoin solutions for businesses in any industry, and this new equity capital will further accelerate progress towards making this exciting network accessible – and useful – to all.”
NYDIG Serving Institutional Players
NYDIG has gained major market traction by offering crypto services to institutional players. It specializes in a wide range of Bitcoin financial services such as trading brokerages, savings account, 401(k), etc.
Over the last year, many big financial players have been buying BTC using NYDIG’s services. For e.g. the $10 billion asset manager Stone Ridge purchased a staggering 10,000 Bitcoins using NYDIG’s services. Furthermore, NYDIG is working on launching BTC trading to 18 million US banking customers. It is also set to bring Bitcoin adoption to over 650 US banks and credit unions.
As a result, NYDIG has been also conducting new funding rounds over the last year. It raised $100 million and $200 million on two separate occasions. Along with its institutional interest, NYDIG has been working on extending its partnership with the National Basketball’s Association Houston Rockets.
Last month in November, NYDIG also acquired the social media-focused micropayments app Bottlepay in a $300 million deal. Speaking of the recent investment in NYDIG, Scott Ganeles, partner at WestCap, said:
“NYDIG plays a unique role in the industry, empowering companies of all types to incorporate Bitcoin in a secure and compliant way. We are proud to partner with Robby and his outstanding NYDIG team as they forge new paths to accessibility and further accelerate Bitcoin adoption”.
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