Goldman Sachs and Mike Novogratz has invested in BitGo


Goldman Sachs and Mike Novogratz has invested in BitGo

Demand for storage of digital assets — the question is indisputable. This is evidenced by the results of the next round of fundraising for startup BitGo, who managed to attract investors headed by Goldman Sachs.

As stated by the company BitGo, Goldman Sachs and Galaxy Digital Ventures Mike Novogratz together generated $15 million of the $58.5 mln raised during round V. However, in this case more important than the amount, but the presence of the largest investment Bank in the list of investors. Investments Goldman Sachs — a clear signal to its customers and wall street in General.

U.S. law requires companies that manage clients ‘ funds to engage the services of a qualified custodian. Most often it is the pillars of the industry like State Street or Bank of New York Mellon. However, in the case of cryptocurrencies, many companies, specializing in the storage of assets is not too hurried to contact the storage cryptocurrency. To remedy the lack of services the guardians hastened the crypto currency exchange and startups such as BitGo.

“Investing in other asset classes, you usually don’t worry too much about what they will simply disappear. But in the case of cryptocurrencies such fears investors have,” notes Mike Belshe, co-founder and CEO of BitGo. This factor has to be taken into account, he added.

Recall that in BitGo since the beginning of 2018 persistently tried to obtain the license of the custodian of the digital asset, and in September succeeded. License issued by the authorities of South Dakota, however, the company said that obtaining licenses in other States after this rather technical question.

First, the company announced its plans in January, together with the intention to buy another custodian, Kingdom Trust. However, the deal did not materialize, and in may the company announced the intention to create your own repository from scratch.

Now BitGo accepting and storing more than 70 coins and tokens, assets in custody reached $2 billion the Amount of funding raised, given round, the results of which was announced today, is about $70 million.

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