Blockchain security provider BitGo closes $57.5m Series B

BitGo, a blockchain security company, has raised $57.5m in Series B funding.

New investors, Goldman Sachs’ Principal Strategic Investments group and Galaxy Digital Ventures, a venture investment firm founded by Michael Novogratz, are joining Valor Equity Partners, Craft Ventures, DRW, and Redpoint Ventures in the round.

The new funds bring the company’s Series B round to $57.5m, having raised $42.5m in funding back in December 2017. With new capital on board, BitGo plans to develop its $1trn crypto wallet.

“Institutional investors are gradually realizing that digital assets are going to be a game changer, and they want to participate,” said Michael Novogratz, founder of Galaxy Digital.

“We have been impressed with BitGo’s world class team, their deep technical understanding of digital assets as well as their ability to deliver institutional-quality products to investors. Our team is excited to support BitGo as it enters into this next phase of growth.”

BitGo provides institutional investors with security, compliance, and custodial solutions for blockchain-based currencies. Earlier this month, the company announced the launch of BitGo Trust Company, the first qualified custodian purpose-built for storing digital assets.

The company claims to be the world’s largest processor of on-chain bitcoin transactions, processing 15% of all global bitcoin transactions, and $15bn per month across all cryptocurrencies. Its customer base includes the world’s largest cryptocurrency exchanges and spans more than 50 countries, supporting more than 95 coins and tokens.

BitGo is headquartered in Palo Alto, California, and has offices in Sioux Falls, London, Singapore, and Tokyo.

“This strategic investment from Goldman Sachs and Galaxy Digital Ventures validates both our market opportunity and unique position,” said Mike Belshe, CEO, BitGo. “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.”

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