Goldman Sachs Group Inc. and a venture founded by one of its former partners, billionaire Mike Novogratz, are investing in cryptocurrency custodian BitGo Holdings Inc., as the bank’s deep-pocketed clients keep asking about secure ways to hold those assets.
Combined, Goldman Sachs and Novogratz’s Galaxy Digital Ventures contributed about $15 million to BitGo’s Series B fundraising, which brought in a total of $57.5 million, the startup said Thursday. The endorsement from two firms with strong Wall Street roots may help BitGo attract more institutions and wealthy investors as customers.
U.S. regulators require large money managers to entrust client assets to a so-called qualified custodian — often industry pillars such as State Street Corp. and Bank of New York Mellon Corp. But the initial unwillingness of many traditional firms to hold digital currencies, which are notoriously vulnerable to hackers, has kept a lot of major investors out of the market. That’s given startups such as BitGo a chance to pursue their business.
Read more starting at ‘“If you were investing in any other asset class, you’re’ at….
Goldman Wades Deeper in Crypto, Betting on BitGo With Billionaire Mike Novogratz