California-based blockchain security company BitGo announced the close of its $42.5 million Series B financing that will accelerate the momentum of its technology among institutional investors.
Already powering $8 billion in digital transactions per month, BitGo has become an indispensable financial services partner to institutions worldwide, including CME Group and The Royal Mint that leverage BitGo’s technology to add digital currencies to their global product mix.
Mike Belshe, Chief Executive Officer of BitGo, commented on the financing round, led by Valor Equity Partners with participation from David Sacks, Bill Lee, and DRW: “We’ve crossed the tipping point for Bitcoin and other digital currencies, which have transitioned from experiments to front page news. BitGo gives institutions and custodians a solid technology base to offer new digital investment opportunities, products and services. We have been the go-to service for exchanges, hedge-funds, trusts, and businesses for years, now we are expanding our secure and compliant technology to build out an advanced financial ecosystem for investors to work with to make buying, storing, and trading digital assets as easy as possible.”
Antonio Gracias, Founder and Chief Investment at Valor Equity Partners, said: “BitGo is changing the way that digital currency is secured. Institutions can now confidently trust in the security of their digital assets thanks to BitGo, as can their custodial partners. We’re thrilled to be a part of a company that is changing the way that financial services organizations view digital currency.”
Bill Lee, Chairman of the Board at BitGo, said: “BitGo has a long history of working with large institutions that need the highest-grade security, compliance, cold storage, multi-key management, and more. We are thrilled to bring on top notch executives and the expertise of investment legends like Don Wilson at DRW to aggressively expand on BitGo’s leading position with institutional investors.”
BitGo allows custodial institutions to extend new offerings to Wall Street and Main Street. Kingdom Trust, a custodian who services US clients and holds custody of over $12 billion in assets, can offer Bitcoin IRA and allow retirement investors to build positions in cryptocurrencies just as they do in alternative assets like real estate or precious metals.
Matt Jennings, Chief Executive Officer at Kingdom Trust, said: “Being custodian for the assets of clients of registered investment advisors, broker-dealers and investment sponsors comes with great responsibility in an ever-changing regulatory environment. BitGo allows us to bring digital currency – a go-to investment for many investors – alongside stocks, bonds and mutual funds in our retirement offerings with the same security and trust that we expect from institutional-grade partners.”