Cryptocurrency wallet provider BitGo has raised $15 million in new funding, which will be put towards expanding the use of its technology among institutional investors, the company announced Thursday.
Including the new funding, BitGo has raised $58.5 million for its Series B round, making it one of the most well-funded companies in the cryptocurrency industry. The company said it would use the new investments to accelerate the development of its “$1 trillion crypto wallet.”
The latest funding round was led by Goldman Sachs and Galaxy Digital Ventures LLC, the venture capital firm founded by the billionaire Mike Novogratz.
BitGo’s patent multi-signature wallet technology has attracted institutional players because it offers an enterprise-grade custody service for their assets as well as application programming interface access to its underlying security platform. Founded in 2013, BitGo’s multisig e-wallets require a transaction to have two or more signatures before it can be executed, a security layer that reduces the risk of fraud.
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More Cryptocurrencies to Come
For more security, a customer can also set spending limits and corporate treasury policies on the account, which also require multiple approvals from the customer to withdraw above-set limits.
Founded in 2013, the company had operated originally as a bitcoin wallet provider, but then has branched out into other cryptocurrencies and now supports multiple altcoins including Ethereum, Ripple, Litecoin, Bitcoin Cash, Bitcoin Gold, and Royal Mint Gold. It plans to expand that offering to more cryptocurrencies in the future.
Mike Belshe, CEO of BitGo, said the new investment from the two established Wall Street firms validates both his company’s market opportunity and unique position.
“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,” he added.
Also commenting on the news, Michael Novogratz, Founder of Galaxy Digital Ventures LLC, said: “Institutional investors are gradually realizing that digital assets are going to be a game changer, and they want to participate. 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.”