Novogratz, Goldman Sachs Drop Millions on Crypto Custodians BitGo
Macro trader turned Galaxy Digital maestro Michael Novogratz and multinational investment powerhouse Goldman Sachs have announced multi-million dollar investments into digital assets custodian play BitGo.
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In Series B, BitGo Gets High-Profile Backers
In their latest fundraising round, BitGo has secured $15 million USD between Michael Novogratz’s Galaxy Digital Ventures, an arm of his crypto bank Galaxy Digital, and powerhouse Wall Street firm Goldman Sachs.
The total amount of funds BitGo raised in the round was $58.5 million. The news comes on the heels of BitGo receiving regulatory approval for their custody service, BitGo Trust Company, in September 2018.
— Michael Novogratz (@novogratz) October 18, 2018
Novogratz, who’s already made a name for himself as one of Wall Street’s lead embracers of the cryptoeconomy, served as a partner at Goldman from 1998 to 2002, suggesting he may have pitched BitGo’s Series B to his former peers as something he felt they’d be interested in.
BitGo’s successful round and its high-profile participants are notable for several reasons.
First, the investments further legitimize cryptocurrency custody services as an industry, and, in extension, cryptocurrencies in general. Secondly, having Goldman Sachs throw their chips down might cause other Wall Street players to follow suit in embracing the cryptoverse more directly.
Lastly, the Series B will allow BitGo to further build out and optimize its custodian offerings, which Novogratz hailed earlier for leading to “[m]ore institutional architecture.”
All About That Custody As of Late
Both the bank and investment wings of Novogratz’s Galaxy Digital have been making moves in recent times, and when you’re dealing with such sums, particularly in the cryptoverse, secure asset custody is paramount.
That reality is partly why Novogratz made his multi-million dollar bet on BitGo.
And it’s also why just days ago Novogratz declared Galaxy Digital would be the “alpha crypto custody client” of financial services titan Fidelity’s new “full-service” Fidelity Digital Assets cryptocurrency platform.
In the days since, Fidelity Digital Assets has been hailed as a mainstream-minded gamechanger for Wall Street’s adoption of cryptocurrencies.
2018 has also seen platforms like Bakkt and Coinbase Custody rise up in respective bids to offer institutions enterprise-grade custody solutions for digital assets. Who will ultimately win out in custody rat race, or if there will be multiple dominant winners, remains to be seen.
What’s your take? Do you think BitGo is well positioned now to become dominant in the years ahead? Let us know in the comments section below.
Images via BitGo, Pixabay