BitGo Raises $42 Million

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One of bitcoin’s biggest company with a focus on securing digital assets, has raised $42.5 million in a series B founding round led by Valor Equity Partners with DRW, a Chicago-based trading firm, and others, also taking part.

“We’ve crossed the tipping point for Bitcoin and other digital currencies, which have transitioned from experiments to front page news,” Mike Belshe, CEO of BitGo, says before adding:

“We have been the go-to service for exchanges, hedge-funds, trusts, and businesses for years, now we are expanding our secure and compliant technology to build out an advanced financial ecosystem for investors to work with to make buying, storing, and trading digital assets as easy as possible.”

They work with a number of bitcoin exchanges, such as Bitstamp and Kraken, and have further expanded recently to include CME Group and The Royal Mint.

“BitGo has a long history of working with large institutions that need the highest-grade security, compliance, cold storage, multi-key management, and more,” said Bill Lee, Chairman of the Board at BitGo, before adding:

“We are thrilled to bring on top notch executives and the expertise of investment legends like Don Wilson at DRW to aggressively expand on BitGo’s leading position with institutional investors.”

The Silicon Valley based company, however, was partially blamed for its role in last year’s theft of 120,000 bitcoin from Bitfinex, which used BitGo’s multisig service. The hacker still somehow managed to bypass it.

BitGo said at the time their “systems were not breached in this attack and our software functioned correctly,” raising continued questions regarding what exactly happened in that Bitfinex hack.

But BitGo has maintained trust of service providers and it currently “powers $8 billion in digital transactions per month,” according to a statement.

One of them is Kingdom Trust, a custodian who services US clients  and holds custody of over $12 billion in assets, Trustnodes is told.

“As a federally approved custodian according to IRS Code Title 26 Sec. 408, Kingdom Trust can offer Bitcoin IRA and allow retirement investors to build positions in cryptocurrencies just as they do in alternative assets like real estate or precious metals,” BitGo says.

The company is now to expand beyond US and potentially into other digital currencies, such as ethereum and Bitcoin Cash. With their successful round just another indication of the growing interest in this space. A space that now may be welcoming the billion dollar hedge funds.

 

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