On 18th October, it was announced that Michael Novogratz and Goldman Sachs are both investing in BitGo, a cryptocurrency custody company planning to fill the institutional investors’ gap in the cryptosphere.
Reports have shown that both the parties have contributed around $15 million into BitGo’s Series B funding round. The move comes in the wake of the issue of custody being raised multiple times in roundtable discussions as well as Senate hearing regarding cryptocurrencies. Mike Belshe, the CEO and Co-Founder of BitGo had said:
“This is the missing piece for infrastructure — it’s a treacherous environment today. Hedge funds need it, family offices need it, and they can’t participate in digital currency until they have a place to store it that’s regulated.”
BitGo created ripples in the cryptocurrency space by becoming the first company to act as a regulated custody offering specifically for digital assets. The investments from the financial bigwigs are speculated to give a massive push to cryptocurrencies such as Bitcoin [BTC] into the realm of mainstream adoption.
Belshe further added:
“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. For cryptocurrencies to reach their full potential, we’ve got to conquer that.”
Michael Novogratz, a former Goldman Sachs partner, has been in the news lately, with him talking about Fidelity’s recent entry into the cryptocurrency industry. Novogratz, who is a known crypto bull, saw the rapid developments in the space as a sign of progress and free thinking. During a recent interview he had stated:
“I see Bitcoin like gold almost as a currency, and I see the rest of web 3.0 more as a commodity, but you know, that’s one guy’s opinion. And so I think the institutional world is going to galvanize around how to see this as an asset.”
The cryptocurrency bull’s former employer, Goldman Sachs has not been out of the news either. The San Francisco based finance behemoth has even backed Circle, a blockchain firm which had recently released a stablecoin called USD Coin [USDC].
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