As the cryptocurrency business and markets mature and adapt for a wider range of users, investors both retail and institutional, many complications have to be conquered. Besides regulatory and technical aspects of blockchain technology, the uneasiness of using crypto in any capacity for both lay persons & lay institutional investors is also a determining factor. This is where intermediaries like custodian services take up responsibility of safeguarding assets. Now, a crypto wallet service provider since 2013, BitGo has raised in excess of $50 million to build its own regulation compliant custody business, BitGo Trust Co. And in a further vote of confidence, $15 million of 50 comes from investments by Goldman Sachs Group Inc. and head of Galaxy Digital Ventures venture capital billionaire Mike Novogratz (1).
BitGo has previously tried to expand into custody service, albeit unsuccessfully. Earlier this year, a potential deal to acquire crypto custodian service provider ‘Kingdom Trust’ fell through, perhaps for the better. Now, the present partnership with industry brand name Goldman Sachs and veteran Mike Novogratz will bolster credibility and endorsement. With BitGo already offering wallet services for 75 coins/tokens and expanding, a bright future is on the cards, even more so if Mike Novogratz’s optimism about crypto comes true.
Mike Belshe, BitGo’s co-founder and chief executive officer:
“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, we’ve got to conquer that.”
Michael DuVally, Goldman spokesman
“We believe that a custody offering is a logical precursor to digital asset market making.”
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