BitGo Raises $59 Million In Series B Funding From Goldman Sachs

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BitGo Raises $59 Million In Series B Funding From Goldman Sachs

Goldman Sachs, Wall Street Banking giant, has again invested in cryptocurrency industry in the digital asset custodian BitGo funding B round. The company has so far invested almost $59 million in the industry. The Silicon Valley-based Bitcoin startup raised a total of nearly $70 million in funds. The other participants of the series B funding round included ‘Galaxy Digital Ventures‘ a cryptocurrency fund founded by former Goldman partner Mike Novogratz and billionaire Bitcoin bull.

According to the reports by Bloomberg, Galaxy Digital and Goldman Sachs together contributed $15 million to the funding round. Mike Belshe, the co-founder of BitGo admitted that people somewhere have fear to invest in their asset class as they are worried about their assets that it may disappear. But Mike assured to Bloomberg in an interview that the company will work to address the fear.

BitGo was founded in 2013 and enjoys nearly $2 billion shares in the customer assets from 95 different cryptocurrencies. BitGo has recently received a regulatory approval from the South Dakota Division of Banking to provide services related to cryptocurrency custody. The regulatory approval has made BitGo the only regulated custodian created explicitly for crypto assets

Although it’s a good sign for BitGo to receive a green signal from the regulatory body, it will have to convince other institutions and win over their confidence on the assets. BitGo has received a financial help from Goldman Sachs and it should have enough for them to go a long way to build that trust in other institutions. Rana Yared, the Managing Director of Goldman Sachs’ Principal Strategic Investments group said that there must be a regulated and secure custody solution required for the participation of greater institutions in the digital assets market.

Yared commented on the investment saying that the company has full faith in the asset of BitGo as well as its unique products, services, and the management team. Yared believes that the investment in BitGo is an opportunity for the company to invest in the growth of the crypto market ecosystem.

BitGo may have to draft strategies against its competitors as they have already begun to deploy blockchain-based products for clients that are curious for crypto assets.

According to reports, Fidelity Investments has recently announced that it is launching another company named Fidelity Digital Assets Services which will serve trade execution and cryptocurrency custody for institutional investors. Fidelity Investments is the world’s 5th largest asset manager that worth $7.2 trillion with 27 million clients. The new company whose official launch is due has already signed Galaxy Digital as its first custody client.

Goldman Sachs is also working on a custody product for cryptocurrency assets. However, it is not finalized as for when that product will be launched. Earlier, Goldman was in news for its announcement pertaining to Bitcoin trading desk, however, later the company set aside its plans for the trading desk. Now, the company is completely focusing on cryptocurrency custody. The cryptocurrency market is ever growing with many big players taking a dip in it.