Goldman Sachs Dips Deeper into Crypto

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Investment banking giant Goldman Sachs and Galaxy Digital, the crypto merchant bank set up by former Wall Street banker Mike Novogratz, are among the investors participating in BitGo’s series B funding round.

BitGo is a California-based blockchain security company, which in mid-2014 became the first company to commercialize multi-signature cryptocurrency wallets.

According to the Bloomberg report, BitGo brought in a total of USD 58.5 million in the funding round, out of which the two firms together invested USD 15 million. The report further noted that securing investments from high-profile financial firms like Goldman Sachs may help the crypto security startup attract more wealthy individuals and financial institutions as clients.

According to Mike Novogratz, the move represents yet another step on the way to develop the architecture needed for institutions to fully embrace crypto:

inside the usacash managers are required to turn property over to 1/3 party custodians for safety motives. The identicalapplies to establishments which are handling massive amounts of money within the form of virtual belongingsand is the reason why Wall street is so keen on getting extra depended on custodians into this market.

Explaining why custody is such an vital difficulty to massive crypto investors mainly, BitGo’s co-founder and CEO Mike Belshe stated “in case you had been making an investment in another asset class, you’re probable no longer involvedapproximately the asset just disappearing – but this one, human beings nonetheless have that fear,” including “we’ve got to overcome that.”

Despite investing in BitGo, Mike Novogratz and Galaxy Digital are already working with other companies on crypto custody services. As reported earlier this week, Galaxy Digital will be the “alpha crypto custody client” for Fidelity’s newly announced crypto initiative, Fidelity Digital Assets, a full-service digital assets platform for financial institutions.

With USD 7.2 trillion of assets under management, Fidelity is the fourth largest asset manager in the world. It has been operating in the financial services industry since 1946.

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