Goldman Sachs and Mike Novogratz came together to invest in BitGo Holdings Inc. to attract more corporations and wealthy customers that offer safe ways to store crypto assets. Galaxy Digital Ventures, owned by Goldman Sachs and Novogratz, has invested $ 15 million in BitGo’s B Series financing. According to the company, a total of $ 58.5 million was raised by funds from Valor Equity Partners, Craft Ventures, DRW and Redpoint Ventures.
Goldman Sachs and Novogratz to fund BitGo’s $ 1 trillion crypto wallet
The Fund was created to support the development of BitGo’s $ 1 trillion crypto wallet. Following Goldman Sachs and Novogratz’s investment, BitGo’s CEO Mike Belshe said
To serve corporate investors who want to trade crypto money and digital assets, BitGo is currently offering the best solution on the market. That’s why we focused on a project that could secure a $ 1 trillion asset. The market does not yet have these funds.
The crypto market has recorded significant growth in recent years. Nevertheless, the funds from corporate firms are not at the expected level. Many think that having secure storage options with low capacity is an obstacle to the adoption of institutional investors. However, they do not ignore the fact that there is an asset class that needs more dignity.
The expansion of crypto storage service can bring corporate funds to the sector
As a result, a number of financial institutions, such as JPMorgan and the Northern Trust, have taken up the issue of providing custody services for crypto funds. In August, Goldman Sachs was reported to be considering setting up his own custodian service for crypto funds. The spokesperson for the Wall Street bank said:
In response to customer interest in various digital products, we are looking at how we can best serve them in this area. At this point, we have not yet reached a conclusion about the scope of our digital asset offer.
Asset manager Fidelity Investments announced earlier this week that it was launching its own crypto service for corporate investors for Bitcoin and Ethereum. The market believes that this development can help with the crypto adaptation.