Palo Alto-based startup BitGo, which develops secure wallets for crypto custody, has raised a $57.5 million Series B financing round led by Goldman Sachs (GS) and Michael Novogratz, the CEO of cryptocurrency focused merchant bank Galaxy Digital LP (GLXY).
— Bloomberg Crypto (@crypto) October 18, 2018
According to an exclusive report by Bloomberg, Goldman Sachs and Novogratz’s Galaxy Digital Ventures contributed a combined $15 million in the fundraising round. Goldman Sachs’ investment notably comes through its principal strategic investments group.
The funds raised will reportedly go towards the company’s efforts to build out a $1 trillion cryptocurrency wallet through the on-boarding of institutional investors.
“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,” said Mike Belshe, CEO of BitGo.[Read: Mike Novogratz Changes His 2018 Bitcoin Price Target, Yet Again]
This news comes several weeks after Goldman Sachs, in league with GV (formally Google Ventures), Kleiner Perkins and Silicon Valley Bank, made a $25 million investment in Veem, a blockchain-powered payment service for small businesses.
While there has been significant back and forth regarding Goldman Sachs’ position on crypto, the latest reports suggest that the banking giant is considering trading on the new Bakkt exchange. Despite the lack of clarity with its future trading operations, Goldman Sachs’ startup investment track record indicates a serious interest in at least the infrastructure of the emerging industry.
With this latest fundraising round, BitGo has brought in a total of $70 million to date while offering its custody services, which currently holds more than $2 billion in assets, for more than 75 different coins and tokens.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.