Goldman Sachs, Michael Novogratz to Create $1 Trillion Crypto Wallet With BitGo

Goldman Sachs and Galaxy Digital Ventures led the $58.5 million fundraising of BitGo Holdings Inc., bringing it a little closer to realizing the creation of a $1 trillion crypto wallet.

American investment bank Goldman Sachs Group Inc. and Galaxy Digital Ventures, a venture capital fund founded by one of its previous partners, cryptocurrency believer and billionaire Mike Novogratz, have invested in BitGo Holdings Inc., the world's largest processor of on-chain Bitcoin transactions.

The move by Goldman Sachs’ Principal Strategic Investments group aims to satisfy demand from its high-net-worth clients who are looking for better ways to secure their digital asset portfolios, according to a report.

BitGo CEO Mike Belshe stated:

"This strategic investment from Galaxy Digital Ventures and Goldman Sachs validates both our 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 is why we are 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."

BitGo’s latest Series B fundraising generated at least $15 million from Galaxy Digital and Goldman Sachs. The investment from the two powerhouse Wall Street investors also allows BitGo to attract more institutional and wealthy investors, making it closer to support its development of a $1 trillion crypto wallet.

The company also added other investors, namely Craft Ventures, DRW, Redpoint Ventures, and Valor Equity Partners bringing the total investments raised in this round to $58.5 million.

Principal Strategic Investments Managing Director Rana Yared added that the digital market requires regulated and secure custody solutions to attract greater participation from institutional investors.

“We are impressed by BitGo’s product, unique services, and the management team. We view our investment in BitGo as an exciting opportunity to contribute to the evolution of this critical market infrastructure,” Yared said.

For his part, Novogratz noted that institutional investors are slowly accepting the importance of digital assets as the next game changer and they want to participate in it. He said, "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."

In September, Goldman Sachs led a $25 million funding round of San Francisco-based blockchain payment provider Veem to expand its services focusing on seamless transactions for small companies.