Investment bank Goldman Sachs and Bitcoin bull Mike Novogratz have invested $15 million in BitGo Holdings Inc., which will provide a secure asset custody facility for institutional investors and wealthy clients. The company considers its $1 trillion BitGo crypto wallet to be such a tool.
According to BitGo, another $58.5 million in total was invested by Valor Equity Partners, Craft Ventures, DRW and Redpoint Ventures.
“The BitGo startup will be able to better serve institutional investors who want to trade cryptocurrencies and digital assets. We're now figuring out what we'll need to store a trillion dollars. We don’t have it yet, but we need to be ready,” said Mike Belshe, CEO of BitGo
For many institutional investors, the barrier to entering the crypto market is the lack of reliable tools for safe custody of assets. A number of financial institutions, including JPMorgan and Northern Trust, are exploring the possibility of providing such instruments in the form of custodial services for crypto funds. Goldman Sachs is also one of these companies.
“Institutional investors will gradually understand that digital assets are changing the playing field and will want to participate,” Novogratz said.
With more and more major financial players are entering this market, the question now is not to ignore cryptocurrencies, but how to use them more profitably.
According to BitGo itself, it owns assets worth more than $2 billion and supports more than 95 tokens.
According to coinjournal.net
You May Also Like
SBI Group creates a platform for hedging the risks of crypto investors
On July 31, 2018, Japanese financial services company SBI Group announced that it plans to create a trading platform for cryptocurrency credit default swaps (CDS), also known as derivatives. The purpose of the platform is to hedge the risk that large crypto investors are interested in, and therefore SBI has made a significant investment in US-based digital marketplace developer Clear Markets.
The process has begun. Hedge funds are closing
Bitcoin was trading more than 1,000% higher in 2017, with many investors and institutional firms pouring heavily into the new digital gold. Now Bitcoin has lost more than 80% of its value, and many of the hedge funds that invested in Bitcoin are now closed, and some are going out of business.
