Goldman Sachs and an investment firm set up by billionaire Michael Novogratz have invested in BitGo, a startup promising to help institutional investors securely store their cryptocurrency.
Between them, Goldman and Galaxy Digital Ventures are investing about $16 million in BitGo, joining a previously announced Series B funding round, which now stands at $58.5 million.
As Wall Street becomes increasingly interested in digital assets, BitGo is at the forefront of keeping them safe, providing institutional investors with security, compliance, and custodial solutions.
The firm is used by hundreds of crypto exchanges around the world and claims to secure more than $2 billion in assets in wallets. With its new backing from Wall Street heavyweights, it is targeting $1 trillion.
Mike Belshe, CEO, BitGo, says: "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."
Rana Yared, an MD of Goldman Sachs' Principal Strategic Investments group, says: "Greater institutional participation in the digital asset markets requires secure and regulated custody solutions...We view our investment in BitGo as an exciting opportunity to contribute to the evolution of this critical market infrastructure."