[Breaking] Goldman Sachs And Mike Novogratz’s Galaxy Digital to Invest In BitGo Crypto Asset Custodian
Goldman Sachs To Invest In BitGo With Billionaire Mike Novogratz
The market leaders in institutional grade crypto security, BitGo recently announced that they have closed the second round in their Series B funding.
New investors, Goldman Sachs’ Principal Strategic Investments group and Galaxy Digital Ventures LLC, a venture investment firm founded by Michael Novogratz, join Valor Equity Partners, Craft Ventures, DRW, and Redpoint Ventures. This brings the total amount raised in this round to $58.5 million.
BitGo is the world's largest processor of on-chain bitcoin transactions, processing 15% of all global bitcoin transactions, and $15 billion per month across all cryptocurrencies. The company has a customer base that includes the world's largest cryptocurrency exchanges and spans more than 50 countries. BitGo is headquartered in Palo Alto, California, and has offices in Sioux Falls, London, Singapore, and Tokyo.
“This strategic investment from Goldman Sachs and Galaxy Digital Ventures validates both our market opportunity and unique position,” said Mike Belshe, CEO of BitGo.
“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.”
U.S. regulators need large money managers to trust client assets to a qualified custodian often industry pillars such as State Street Corp. and Bank of New York Mellon Corp. But the original unwillingness of those institutions to hold digital currencies, which are exposed to hackers, has kept many major investors out of the market. That’s given startups such as BitGo a chance to pursue their business.
“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,” Mike added. For cryptocurrencies to reach their full potential, “we’ve got to conquer that.”
On his new investment, billionaire Michael Novogratz said:
“Institutional investors are gradually realizing that digital assets are going to be a game changer, and they want to participate. We have been impressed with BitGo’s world-class team, their deep technical understanding of digital assets as well as their ability to deliver institutional-quality products to investors. Our team is excited to support BitGo as it enters into this next phase of growth.”
The crypto community is waiting for the institutional investors to catch up with the technology, but the regulations and security still remains a major obstacle.
— Michael Novogratz (@novogratz) October 18, 2018