The race for the cryptocurrency custodial king is quickly heating up. Just days after Fidelity Investments announced that it would offer crypto security and storage services, BitGo has announced the closing of its Series B funding round. The startup offers crypto custody solutions through its BitGo Trust subsidiary. The $58.5 million round saw participation from Wall Street giant Goldman Sachs as well as from former hedge fund manager turned Bitcoin bull Mike Novogratz. BitGo will use the funds to develop its crypto wallet as it seeks to capitalize on increasing interest from institutional investors.
Digital assets are going to be the game-changer and institutional investors are gradually realizing this, Novogratz stated. Novogratz, whose crypto merchant bank Galaxy Digital Ventures is listed on the Toronto Stock Exchange, explained why he invested in BitGo: