Mike Novogratz, former fund manager at Fortress Group, and Goldman Sachs are investing in digital currency firm BitGo and the developments of its $1 trillion cryptocurrency wallet.
The funding round raised a total amount of $57.5 million and included strategic investments by Novogratz’ Galaxy Digital Ventures, Goldman Sachs’ Principal Strategic Investments, Valor Equity Partners, Craft Ventures, DRW, and Redpoint Ventures.
Mike Belshe, CEO, BitGo, said:
“This strategic investment from Goldman Sachs and Galaxy Digital Ventures validates both our market opportunity and unique position. 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.”
Rana Yared, a Managing Director of Goldman Sachs’ Principal Strategic Investments group, added:
“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.”
Michael Novogratz, Founder of Galaxy Digital Ventures LLC, commented:
“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.”
BitGo, a provider of security, compliance, and custodial solutions for blockchain-based currencies, accounts for 15% of all global bitcoin transactions and $15 billion per month across all cryptocurrencies as it supports more than 95 coins and tokens in over 50 countries. The firm has recently launched the first qualified custodian purpose-built for storing digital assets, BitGo Trust Company.
This week, Formosa Financial, the one-stop financial services platform for managing digital assets, has integrated BitGo’s custodial services into the Formosa Financial suite of digital asset management tools. BitGo recently received regulatory approval to operate a trust company in the US, further extending their advantage as a qualified custodian operating in a fast-evolving space.
BitGo’s custodial services are trusted by high-profile names such as Ripple, Bitstamp, SBI Holdings, CME Group, and The Royal Mint (Her Majesty’s Treasury).
BitGo’s solution paired with Formosa Financial’s other offerings such as liquidity-pooling prime brokerage services and interest-bearing products (via partnership with Compound Protocol) will enable clients to focus on their core strengths by simplifying their treasury management system, which in turn offers the added advantage of consolidating time-consuming KYC/AML processes.