U.S. banking giant Goldman Sachs and its former partner Mike Novogratz, now CEO of crypto investment firm Galaxy Digital, have recently invested in U.S. crypto custody service BitGo, Bloomberg reports Wednesday, Oct. 18.
In total, BitGo's series B fund rounding has brought in $58.5 million.
According to Bloomberg, Goldman Sachs and Novogratz together contributed about $15 million, as their clients show growing interest in cryptocurrencies.
The significant investment from two firms affiliated with Wall Street might help BitGo attract more wealthy investors in the future, Bloomberg believes.
BitGo is an American crypto wallet and blockchain security firm founded back in 2013.
As Cointelegraph wrote earlier, in September, the company received a state trust company charter from the South Dakota Division of Banking, thus becoming a qualified custodian for crypto.
Goldman Sachs has also reportedly considered creating its own crypto custody.
In August, insiders told Bloomberg that the company aims to offer various products linked to digital assets "In response to client interest." The unnamed sources added that having a custodian operation could also lead Goldman Sachs to other ventures, including prime-brokerage services.
The U.S. banking giant recently led a $25 million strategic funding round for blockchain payments startup Veem, which utilizes digital ledger technology to increase the efficiency of small business payments, with one of Goldman Sachs' officials joining its board.
In late September, Novogratz, who is well-known for his optimistic crypto forecasts, commented on Fidelity Investments' decision to release a custody solution tailored to institutional investors, saying crypto custodians need further testing prior to attaining mass interest based on investor trust.
Goldman Sachs and Galaxy Digital's Mike Novogratz Invest $15 Million in Crypto Custody Firm
Published on Oct 18, 2018
by Cointele | Published on Coinage
Coinage
Recent News
View All
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.