Goldman Sachs, along with a consortium of fintech-centric venture capital groups, has just furthered its involvement in the nascent crypto market, investing in one of this industry’s best.
Goldman Sachs, Novogratz’ Galaxy Digital Invest $15M In Crypto Startup
Contrary to popular belief, 2018’s dismal crypto market hasn’t deterred the arrival of institutions, who were previously hesitant to enter the cryptosphere due to a multitude of issues and fears.
Now, per a report from Bloomberg, Wall Street giant Goldman Sachs and its former partner Mike Novogratz have thrown millions of dollars at BitGo Holdings, a five-year-old Palo Alto-based crypto asset custody startup that has rapidly revolutionized this industry.
In an official press release pertaining to the matter, it was explained that BitGo’s custodial solutions are responsible for 15% of “all global Bitcoin transactions” and $15 billion worth of monthly transactions across dozens of blockchain networks, which aren’t figures to scoff at.
Evidently being drawn in by BitGo’s top-notch numbers, the multinational Goldman Sachs, Mike Novogratz’s crypto-focused merchant bank, and a series of prominent venture capital funds, such as Craft Ventures and Redpoint Ventures, have contributed $57.5 million to BitGo’s most-recent Series B fundraising round. Between Goldman and Galaxy Digital, $15 million was reportedly contributed to the budding startup.
As noted by BitGo itself, which has garnered the business of “hundreds of exchanges globally across more than 50 countries,” the capital raised in the Series B round will back “BitGo’s development of its $1 trillion crypto wallet.”
Taking this most recent influx of capital into account, BitGo has now gathered approximately $70 million in total from investors, making it a sought-after player in an ever-changing space.
Speaking on the investment, Rana Yared, a managing director at Goldman Sachs‘ Principal Strategic Investments Group, stated — “Greater institutional participation in the digital asset markets requires secure and regulated custody solutions. We view our investment in BitGo as an exciting opportunity to contribute to the evolution of this critical market infrastructure.”
Although the aforementioned Goldman branch seems over-the-moon about the investment, it still isn’t clear how BitGo will slot into the financial institution’s plans to offer cryptocurrency-centric products and platforms.
BitGo CEO: Interest In Crypto Will Continue To Grow
Sitting down with CNBC Fast Money in mid-September, CEO Belshe explained that this industry, which will only be bolstered by institutional-focused crypto solutions, has a long-term growth potential.
— CNBC's Fast Money (@CNBCFastMoney) September 13, 2018
The innovator noted:
“Well, it has been ongoing for the past couple of years now, as traditional finance has started to get engaged with cryptocurrency as the market has grown and shown that it has real promise. For the future, the interest will continue to grow, so it’s everywhere.”
The BitGO exectuive later pointed out that a lack of well-established custodians has been a barrier for institutions to get in, as these firms are regulatory-bound to enlist the use of a proper custodial solution, stating that these services “have to exist” for a developed crypto market to be realized.