Bitcoin trading and custody services provider NYDIG announced Monday it has raised $1 billion in a growth capital round that values the firm at $7 billion.
The recent financing round was led by WestCap with financial backing from some of that industry’s most visible names. It was also bankrolled by prior leads Bessemer Venture Partners and FinTech Collective, as well as strategic partners and existing investors Affirm, FIS, Fiserv, MassMutual, Morgan Stanley, and New York Life.
The growth capital round brings NYDIG’s total funding to date to $1.4 billion, according to Crunchbase. Earlier this year, the firm had raised a total of $300 million in two separate rounds.
With the fresh capital in hand, NYDIG plans to fund its aggressive and multifaceted bitcoin expansion plan. It is now gearing up to further develop its Bitcoin-related strategic initiatives spanning investment management, Lightning payments, asset tokenization, and smart contracts.
What those products might look like was not entirely clear at press time.
“We are leading the investment round in NYDIG because of a shared belief in the industry-reshaping power of Bitcoin and WestCap’s conviction in the NYDIG team to continue to execute on the incredible opportunity in front of them. 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,” said Scott Ganeles, Partner at WestCap.
The funding comes on the heels of a year of unprecedented growth for NYDIG, as the firm leads the way in expanding access to Bitcoin for global banks. Earlier in October, US Bancorp (US Bank), which has more than $8.6 trillion in assets under custody, has collaborated with NYDIG to launch an institutional-grade custody solution for cryptocurrencies.
In particular, the new custody service is open for institutional investment managers who have private funds in the United States and Cayman Islands.
The collaboration is powered by NYDIG’s regulated bitcoin platform, which is the cryptocurrency arm of Stone Ridge, a $10 billion alternative asset manager.
“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,” added Robert Gutmann, co-founder and CEO of NYDIG.
