BitGo is Latest Recipient of Goldman Sachs', Novogratz Crypto InvestmentsOct 19, 2018, 7:57AM
BitGo will join Fidelity Digital Assets and others in the increasingly competitive market for cryptocurrency custody services
Mike Novogratz, the billionaire investor behind Galaxy Digital, makes headlines once again, this time by joining forces with Goldman Sachs Group for an investment in BitGo Holdings Inc. The investment is part of BitGo's Series B fundraiser, and it brings the total capital raised to $57.5 million according to sources within the company.
BitGo Holdings: Another Crypto Custody Startup
BitGo Holdings is a Palo Alto-based startup dedicated to providing cryptocurrency custody solutions for its clients. Its services include advanced cold storage, KYC/AML transaction processing, and reporting.
The market for services related to digital-asset custody is strong, due in part to U.S regulations that require certain financial firms to entrust client assets to what are called qualified custodians. Most qualified custodians do not hold digital assets, and this creates an opportunity for new players to enter the market.
So far, BitGo Holdings has amassed $70 million through its various investment rounds with the latest Series B representing more than half of that total. Goldman Sachs Group and Galaxy Digital contributed around $15 million towards the $57.5 million raised in the most recent funding round.
An Interconnected Investment Landscape
BitGo is not the first company exploring opportunities in the digital asset custody space, nor is it the only one associated with Mike Novogratz and his company Galaxy Digital. Earlier in the week, Fidelity Investments announced the launch of its new cryptocurrency custody and trading platform through a standalone entity called Fidelity Digital Assets Services. Galaxy Digital is the new firm's first client.
Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.