US banking giant Goldman Sachs and its former partner Mike Novogratz, now CEO of Galaxy Digital, have recently invested in BitGo, the United States' crypto custody service, it reported to Bloomberg on Oct. 18.
In total, BitGo's B-series rounding of funds generated $ 58.5 million. According to Bloomberg, Goldman Sachs and Novogratz together contributed about $ 15 million, as their clients demonstrate a growing interest in crypto-coins.
Bloomberg notes that BitGo has been able to raise a total of $ 70 million in all fundraising rounds. Significant investment by two companies affiliated with Wall Street may help BitGo attract richer investors in the future, Bloomberg believes.
BitGo is an American crypto and securities portfolio company founded in 2013. As Cointelegraph previously wrote in September, the company received a letter of trust from the state of the South Dakota Banking Division, becoming a qualified custodian to crypto.
Goldman Sachs also allegedly considered creating its own crypto custody. In August, experts told Bloomberg that the company intends to offer several products linked to digital assets "in response to customer interest." Unidentified sources added that having a custody operation could also lead Goldman Sachs to other ventures, including brokerage services.
In addition, the US banking giant recently led a $ 25 million strategic funding round for blocking startup Vehem, which uses digital ledger technology to increase the efficiency of small business payments with one of authorities of Goldman Sachs joining the board.
Late in September, Novogratz, which is well known for its upbeat crypto predictions, commented on Fidelity's decision to launch a tailor-made custody solution for institutional investors, saying crypto custodians need more testing before reaching interest in based on investor confidence.