Goldman Invests $15 Million In Crypto Storage Service BitGo

Goldman has once again reaffirmed its confidence on crypto investments. The financial institution in partnership with former partner, Mike Novogratz, has invested $15 million in BitGo Holdings. The investment brings to $57.5 million the total amount BitGo has raised in the recent past as part of Series B fundraising.

The firm made the multimillion investments through its strategic investment group. The group is made up of executives as well as managing director for crypto strategy Rana Yared. Novogratz, on the other hand, is reportedly acting as an active liaison for giant institutions eyeing opportunities in the sector.

The investment comes on growing talk that Goldman sacs clientele are increasingly eyeing opportunities in the burgeoning sector. The lack of reputable crypto custodians remains one of the biggest hurdles in increased investments in the sector. However, that has not stopped high profile institutions and investor from investing.

While crypto storage remains one of the biggest headwinds, regulatory uncertainty also continues to spook institutional investors. People are increasingly calling for more clarity and laws that would protect their investments in the sector.

A Goldman Sachs investments will go a long way in strengthening BitGo prospects in the industry. The firm could be the subject of increased financial investments from other institutional investors. Founded in 2013, in Palo Alto, BitGo offers multi-signature digital wallets. It also offers cold storage vaults for various cryptocurrencies.

The company has made important strides in building a reputable custody business ever since its deal to acquire Kingdom Trust collapsed.  Its efforts are already paying off given the amount of interest it continues to receive from institutional investors. The Digital Wallet provider has so far raised $70 million through funding rounds. The firm offers storage services for more than 75 coins and holds more than $2 billion in assets.

Goldman Investment in BitGo does not come as a surprise. For starters, the company is increasingly exploring ways to address the needs of high profile investors eyeing opportunities in the crypto space.  The need for a credible crypto storage service in Wall Street is one of the reasons why it invested in BitGo.

“We believe that a custody offering is a logical precursor to digital asset market making,” said Goldman spokesman Michael DuVally.

Goldman Sachs is considering opening a crypto trading desk.  By partnering with BitGo, the firm remains well positioned to also offer storage services for people who engage in crypto trading.