Goldman Sach and Billionaire investor Mike Novogratz are investing in the cryptocurrency custodian BitGo, reports Bloomberg. According to Bloomberg, the reason for such an investment is because Goldman Sach’s clients are asking for a secure way to store digital assets.
Mike Novogratz would be investing through his personal investment fund named Galaxy Digital. Together Goldman Sachs and Galaxy Digital have put in $15 million in Series B of BitGo. BitGo has closed its Series B with a total of $58.5 million raised.
“We have been impressed with BitGo’s world-class team, their deep technical understanding of digital assets as well as their ability to deliver institutional-quality products to investors. Our team is excited to support BitGo as it enters into this next phase of growth.”, says Mike Novogratz.
BitGo, a San Francisco based startup, specialises in the security of digital assets. The company provides a multi-signature bitcoin wallet service, where keys are divided among a number of owners to manage risk. One of BitGo’s client is BitFinex, one of the largest exchange in the world.
“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 to Bloomberg. “For cryptocurrencies to reach their full potential, “we’ve got to conquer that.”
BitGo has raised a total of $70 million in funding and currently holds $2 Billion in assets.
In 2016, around $60 million worth of Bitcoins were stolen from BitFinex, even though the cold wallet was provided by BitGo. According to Wikipedia, BitGo itself wasn’t hacked, but rather blindly processed withdrawal requests from the hacker, who had obtained access to Bitfinex’s keys.
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