Leading Wall Street Investment Bank, Goldman Sachs and billionaire Mike Novogratz’s Galaxy Digital Ventures have contributed up to $15 million to BitGo’s series B fundraising program.
BitGo is a Blockchain security company that offers a multisignature bitcoin wallet service, where keys are divided among a number of owners to manage risk. The services of BitGo revolves around providing security for institutional investors, alongside custodial solutions for digital assets.
In a press release as reported by businesswire, the above mentioned companies join the likes of Valor Equity Partners, Craft Ventures, DRW, and Redpoint Ventures to raise a total of $58.5 million as BitGo works towards the development of its $1 trillion wallet.
“This strategic investment from Goldman Sachs and Galaxy Digital Ventures validates both our market opportunity and unique position,” said Mike Belshe, CEO, BitGo. “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 entry of institutional investors into the cryptocurrency marketplace is seen by many as a significant step towards stabilizing the markets. However, the absence of robust security and regulated systems has been identified as a factor that makes the marketplace not attractive enough for these big players.
The actions of BitGo and the associated companies involved introduces a new dimension and is capable of altering the current narrative in the industry.
According to Rana Yared, a Managing Director of Goldman Sachs’ Principal Strategic Investments group, greater institutional participation in the digital asset markets requires secure and regulated custody solutions. Yared elaborates that his organization is 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”, he says.
The developments in the cryptocurrency market is beginning to influence the mindset of institutional investors, especially as SEC and other regulatory bodies seem to be considering appropriate regulatory frameworks that will protect investors like exists in other asset classes.
“If you were investing in any other asset class, you’re probably not worried about the asset just disappearing — but this one, people still have that fear,” Mike Belshe, BitGo’s co-founder and chief executive officer, said in an interview, as reported on bloomberg. For cryptocurrencies to reach their full potential, “we’ve got to conquer that.”
Current developments within the ecosystem suggests that institutional investors are beginning to realize the potential of the digital assets marketplace. Hence, investors also may want to capitalize on the possibility of an early entry into the market in other to maximize profit opportunities.
Establishments like BitGo claim to be going ahead by preparing for the imminent realization of this phase of development, hence its target of building a $1 trillion wallet, even while the markets are still some distance away from there.
Iyke Aru is a seasoned author and educator in the blockchain and cryptocurrency industry. He has been in the business of crypto content writing for many years with thousands of his articles across several platforms on the internet. Iyke is based in Nigeria where he stands out as one of the most informed and credible figures in the cryptocurrency industry. Outside blockchain and crypto, you will most likely catch Iyke playing or discussing football with friends and family.