Cryptocurrency startup BitGo backed by Goldman Sachs

Monday 22 October 2018 10:57 CET | News

Goldman Sachs Group and a venture founded by one of its former partners, billionaire Mike Novogratz, have announced plans to invest in cryptocurrency custodian BitGo.

Goldman Sachs and Novogratz’s Galaxy Digital Ventures contributed about USD 15 million to BitGo’s Series B fundraising, which brought in a total of USD 57.5 million. Moreover, the endorsement from two companies with strong Wall Street roots may help the cryptocurrency startup attract more institutions and wealthy investors as customers, according to online publication MyBroadBand.

US regulators require large money managers to entrust client assets to a qualified custodian. But the initial unwillingness of many traditional companies to hold digital currencies, which are considered vulnerable to hackers, has kept a lot of investors out of the market. As a result, startups such as BitGo are given a chance to pursue their business.

The US-based company, founded in 2013, offers digital wallets that require multiple signatures for transactions, as well as offline vaults for storing Bitcoin and rival currencies. So far, BitGo has gathered a total of about USD 70 million in fundraising rounds. The company says it provides services for more than 75 coins and tokens, and that it holds more than USD 2 billion in assets.

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Keywords: Goldman Sachs Group, BitGo, funding, cryptocurrency, investment, digital assets, custodian, US
Countries: World