- Deep-pocketed investors will soon have a platform to pool their crypto assets.
- Goldman and Galaxy Digital raised $15 million for the startup.
- BitGo reaffirms investors that they are doing all they can to undo all the barricades in crypto.
On October 18, 2018, Goldman Sachs Inc. and Galaxy Digital collectively funded BitGo’s Series B with $15 million, according to Bloomberg. The startup will serve crypto enthusiasts by providing a haven for safe and secure digital investments in the crypto world.
Why the Huge Investment by Goldman Sachs
Goldman Sachs Group Inc. and billionaire Mike Novogratz, who was one of its former partners, are investing in the custodian BitGo Holdings Inc. seeing the growing interest of institutional investors in digital currencies.
BitGo’s CEO, Mike Belshe, reaffirms all investors that the crypto industry is headed in the right direction and the darkest hours are almost over with BitGo’s new platform.
Who Qualifies for the Custodian Deal
State Street Corp and Bank of New York Mellon Corp are the leading firms that meet the requirements for a qualified custodian. Most conventional firms avoid the wobbly industry of handling digital cryptocurrencies due to their awe-inspiring nature to hackers.
In an interview, Mike Belshe said;
“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.”
Founded in 2013, the Palo Alto based enterprise decided to test different waters after its attempt to purchase custodian Kingdom Trust went sour sometime in January. After the attempted partnership failed, they (BitGo) resolved to create their custody business, BitGO Trust Go.
BitGo has raised about $70 million through fundraisers for their new venture. The enterprise provides safe custody for clients for over 75 coins and digital fortunes. Currently, they (BitGo) hold over $2 billion in crypto assets.
Goldman Inc has had plans to launch a crypto trading platform for a somewhat long time. As their spokesperson Michael DuVally recently revealed,
“We believe that a custody offering is a logical precursor to digital asset market making.”
Billionaire Mike Novogratz has been at the forefront, championing for crypto acceptance. He is among the top Wall Street champions of bitcoin.
Challenges in the Crypto-world
Fickleness in the regulations standards is a challenge that companies experience in the sector. Financial agencies are yet to establish rules to govern the industry. Their absence creates uncertainty even for investors and banks.
Again, the low value of crypto assets as compared to last year is another turn off for investors. Evidently, bitcoin’s value has gone down 65 per cent since last year.