Blockchain Security Firm BitGo Raises $58.5M In Series B Funding

Investing, News | October 19, 2018 By:

Blockchain security company BitGo has raised an additional $16 million in its Series B funding round, bringing the total amount raised in the round to $58.5 million. New investors, Goldman Sachs’ Principal Strategic Investments group and Michael Novogratz’s Galaxy Digital Ventures, join Valor Equity Partners, Craft Ventures, DRW, and Redpoint Ventures.

BitGo is a blockchain software company that secures cryptocurrency for institutional investors. It provides digital wallets, offline vaults, single integration APIs and private blockchains to world’s largest cryptoc exchanges and financial enterprises. It claims to process 15% of all global bitcoin transactions, and $15 billion per month across all cryptocurrencies.

Bitgo said the funding will support the development of its “$1 trillion crypto wallet.” The endorsement from Goldman Sachs and Galaxy Digital Ventures is expected to help Bitgo attract more institutions and wealthy investors as clients.

“This strategic investment from Goldman Sachs and Galaxy Digital Ventures validates both our market opportunity and unique position,” said Mike Belshe, CEO, BitGo. “No one is better positioned than BitGo to serve institutional investors who want to trade cryptocurrencies and digital assets. That’s why we’re focused on figuring out what it takes to secure a trillion dollars. The market’s not there yet but our job is to be ready first.”

Last month, BitGo received an approval from the South Dakota Division of Banking to act as a qualified custodian for digital assets. The approval enabled the firm to launch a new service called BitGo Trust, which offers 100 percent cold storage technology in bank-grade Class III vaults, supports 75+ coins and tokens, institutional-grade policy controls, multi-user accounts, fast onboarding, and 24/7 support.

“Greater institutional participation in the digital asset markets requires secure and regulated custody solutions,” said Rana Yared, a Managing Director of Goldman Sachs’ Principal Strategic Investments group. “We are impressed by BitGo’s product, unique services, and the management team. We view our investment in BitGo as an exciting opportunity to contribute to the evolution of this critical market infrastructure.”

Michael Novogratz, Founder of Galaxy Digital Ventures, said that institutional investors are gradually realizing that digital assets are going to be a game changer, and they want to participate.

“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,” Novogratz said. “Our team is excited to support BitGo as it enters into this next phase of growth.”