BitGo, a cryptocurrency security company, has secured new investments from Goldman Sachs’ Principal Strategic Investments group and Galaxy Digital Ventures as part of a Series B funding round.
Image: Goldman Sachs and Galaxy Digital are new investors in BitGo. Photo: courtesy of adamr at FreeDigitalPhotos.net.
Headquartered in California, BitGo, which provides security, compliance, and custodial solutions for blockchain-based currencies to institutional investors, has raised a total of $57.5m in the funding round so far.
Through their investments, Goldman Sachs and Galaxy Digital Ventures have joined Valor Equity Partners, Craft Ventures, DRW, and Redpoint Ventures, the other investors.
The cryptocurrency security company said that the funding will help in the development of its $1tn crypto wallet.
Goldman Sachs’ Principal Strategic Investments group managing director Rana Yared said: “Greater institutional participation in the digital asset markets requires secure and regulated custody solutions.
“We are impressed by BitGo’s product, unique services, and the management team. We view our investment in BitGo as an exciting opportunity to contribute to the evolution of this critical market infrastructure.”
The Palo Alto-based cryptocurrency security provider claims to be the largest processor of on-chain bitcoin transactions, covering 15% of all bitcoin transactions across the world, worth $15bn per month across all cryptocurrencies.
The cryptocurrency security company, which claims to have more than $2bn in assets in wallet, said that its technology platform supports over 95 coins and tokens.
BitGo CEO Mike Belshe said: “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.”
The cryptocurrency security provider, which has a customer base across more than 50 countries, also has offices in Sioux Falls, London, Singapore, and Tokyo.
The company has also launched a new business called BitGo Custody to deliver custody purpose-built for digital assets apart from introducing BitGo Trust, which is claimed to be the first qualified custodian purpose-built for digital assets.