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Comments from Wall Street executives like Jamie Dimon and Lloyd Blankfein about the cryptocurrency industry establish their hate for digital currencies. Although most of these executives have apologized for the name calling, it wasn’t until recently that some wall street giants started getting interested in the crypto game. Even so, these companies are still treading cautiously for fear of the highly fluctuating crypto market.
But what happens when your customers want to get into cryptocurrencies? This situation is what Goldman Sachs faces. Together with a venture created by one of its former partners, billionaire Mike Novogratz, Goldman Sachs Group Inc. is investing in BitGo Holdings Inc. a secure, custodial solutions provider for digital assets.
In total, BitGo’s Series B fundraising brought in 57.5 million USD, with Goldman Sachs and Novogratz’s Galaxy Digital Ventures contributing a combined total of 15 million USD. For BitGo, this is a ‘thumbs up’ from Wall Street giants, and an indication of even bigger money to come from other mainstream entities. It is also a push ahead for BitGo to focus on providing the best for its customers and creating a resilient cryptocurrency custody that will make mainstream adoption easier. Many traditional firms have distanced themselves from cryptocurrencies because of the high risks involved, and BitGo is bridging that gap.
The future is bright for the Palo Alto company, which has been able to get around 70 million USD in its different fundraising series. Founded in 2013, BitGo provides both offline and online storage solutions for digital currencies and require multiple signatures for transactions to take place. After failing to acquire another cryptocurrency custodian Kingdom Trust in January this year, BitGo took to building its own custody solution, BitGo Trust Co. which is now gaining trust from mainstream investors.
BitGo’s co-founder and CEO Mike Belshe believes that the fear of loosing too much keeps people from investing in cryptocurrencies, hammering on the fact that:
“If you were investing in any other asset class, you’re probably not worried about the asset just disappearing — but this one, people still have that fear.”
Goldman Sachs could use this as an opportunity to provide its own cryptocurrency services, considering the Wall Street giant has already established its interest in this space.