Galaxy Digital, the firm founded by billionaire cryptocurrency investor Mike Novogratz, are teaming up with U.S. banking giant Goldman Sachs to invest in crypto custody service BitGo.
The two firms are investing $15 million of the total $58 million raised in the startup’s series B funding round. The arrival of the two heavyweights will surely help BitGo attract further investment.
According to the company’s website, BitGo are aiming to build a $1 trillion crypto wallet. CEO Mike Belshe commented on the deal, “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 BitGo deal comes on the back of news that Fidelity Investments are moving forward with their own custody plans. The official announcement of the Boston-based asset maanger this week are highlighting the move of some heavyweight firms into preparing the ground for a wave of institutional investment into the cryto space.
Rana Yared, a Managing Director of Goldman Sachs’ Prinicpal Strategic Investments Group said of the BitGo deal: “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.”
Mike Nogratz reiterated his belief that institutions are keen to get involved, saying, “Institutional investors are gradually realizing that digital assets are going to be a game changer, and they want to participate.”