Goldman Sachs, a giant banking group has joined the Cryptocurrency sector. Together with an investment company called Galaxy Digital Ventures, the two have invested around $15 million in BitGo. The Crypto startup is planning to provide security for Cryptocurrencies. The firm has also revealed that it is holding Crypto assets worth around $2 billion.
Goldman Sachs Invests In A Crypto Startup
Goldman Sachs has officially entered in the Cryptocurrency industry, challenging other institutions that have been wary of joining the sector. The company has invested around $15 million in a Crypto firm known as BitGo Holdings Inc., together with Galaxy Digital Ventures, an investment company. The investment will help BitGo to provide the much-needed secure way of holding the digital assets.
The Crypto startup had a series B fundraising that helped the company to raise $57.5 million. The involvement of the two Wall Street companies, Goldsachs and Galaxy Digital Ventures is expected to play a major role in encouraging wealthy investors and more institutions to approach BitGo for coin storage. Previously, many traditional firms have been unwilling to get into Cryptocurrencies.
Why Most Institutions Are Wary Of Cryptocurrencies
BitGo’s co-founder and CEO Mike Belshe said that unlike most of the other assets, Cryptocurrencies are known for disappearing. This keeps most wealthy investors away, to the disadvantage of the entire Crypto market. Belshe noted that for the market to mature and enable the coins to reach full potential there is a need to address this challenge. That is why BitGo has emerged to provide Crypto investors with a safe and secure storage option.
BitGo has introduced various measures to make their system more secure. For instance, any transaction on the company’s digital wallets needs various signatures. Users can also store Ethereum, Bitcoin, Litecoin and other coins in the firm’s offline vaults. At the beginning of this year, BitGo was about to acquire King Trust but was forced to develop its custody business when the deal failed to mature.
BitGo has been around since 2013. In the various fundraising rounds the company has been involved in, it has collected over $70 million. The company said that it is currently holding coins worth over $2 billion from around the world. The firm handles more than 75 coins. According to Mr. Belshe, they are establishing what it takes to provide storages to coins worth a trillion dollars.
The Involvement Of Goldman Sachs In Cryptocurrencies
Goldman Sachs has recently emerged as an important Cryptocurrency crusader especially among institutions and rich investors. The company was among the first businesses to clear Bitcoin futures. The firm has been interested in assisting those willing to invest in the Crypto sector and recently appointed a head of digital-assets sector to lead this cause.
A few months ago, there were rumors that Goldman Sachs may provide Cryptocurrency storage services. Nevertheless, the company does not have a fully-fledged desk to deal with the virtual currencies. The MD of the company’s strategic investments group Rana Yared was quoted saying that the Crypto market requires secure and regulated altoin storage services.