Prominent crypto custodial company BitGo saw its valuation reach $1.74 billion after securing over $100 million in funding on Wednesday. However, the Palo Alto-based digital asset custodian has declined to reveal the names of participating investors.
In a Statement, BitGo boss Mike Belshe said the latest funds raised would be used to expand the firm’s custody solutions in the United States to allow coin foundations, brands and institutions to participate in the crypto ecosystem in a secure manner. He noted that demand for crypto custodial services in the US has been growing, hence the need to expand BitGo’s solutions.
Brief History of BitGo
BitGo began its operations in 2013. It was the first crypto custodian to offer a multi-sig BTC wallet. However, the firm has since expanded its service portfolio, now offering liquidity, security, and custody solutions. BitGo says it serves over 1,200 institutional clients in more than 40 countries. Additionally, it claims to process about 22% of all Bitcoin transactions.
BitGo has several subsidiaries, including BitGo Trust Company, launched in 2018 to store crypto assets on behalf of its clients; BitGo Prime, a brokerage service that started operations in 2020; and BitGo New York Trust, launched in 2021. Mid-Last year, BitGo began offering institutional clients access to crypto staking, NFT, and decentralized finance.
Who are BitGo’s Clients?
Nike is among the notable companies using BitGo’s services. The sportswear brand uses the BitGo “wallet-as-a-service” product. On the other hand, Swan Bitcoin, a financial service firm and Web3 company Mysten have both contracted BitGo to be their crypto custodian.
BitGo was previously selected to serve as a distributor for the creditors of the fallen crypto exchange Mt.Gox. The company now acts as the custodian for FTX’s creditors. FTX is another crypto exchange that went under back in November.
Meanwhile, following the new funding, BitGo has now raised $170 million in total. The firm’s previous fundraising happened in September 2018. At the time, BitGo secured $57 million from prominent investors like Galaxy Digital Ventures, Valor Equity Partners, Redpoint Ventures, Craft Ventures, and Goldman Sachs.
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