Blockchain Security Firm BitGo Raises 42.5 Million in Series B Funding
Blockchain security company BitGo has raised $42.5 million in a Series B funding round, led by Valor Equity Partners. The round also saw the participation of Chicago-based trading firm DRW, David Sacks and Bill Lee.
The company said the funds will be used to expand its business outside the US to help more companies dive into the nascent digital coin market.
In addition to the funding round, the company announced new appointments – Antonio Gracias, Founder, Managing Partner, and Chief Investment Officer of Valor Equity Partners and board member at Tesla and SpaceX, and David Sacks, Founder/CEO of Yammer and original COO and product leader of PayPal, will join the company’s board of directors. Don Wilson, the founder of asset trader DRW and a co-founder of blockchain startup Digital Asset, will join as an advisor.
BitGo CEO Mike Belshe said 2018 will be the year in which traditional asset managers and hedge funds enter the market. He added that they need to be prepared for the $1 billion fund which needs the company’s technology.
“We’ve crossed the tipping point for bitcoin and other digital currencies, which have transitioned from experiments to front page news,” said Belshe. “BitGo gives institutions and custodians a solid technology base to offer new digital investment opportunities, products and services. 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.”
Founded in 2013 by Mike Belshe and Ben Davenport, BitGo offers B2B products for bitcoin, ethereum, Ripple, Litecoin, RMG, and other digital currencies. The company builds the BitGo Offline Vault, an enterprise-grade, secure cold storage solution atop HSMs for both custodial and non-custodial solutions.
Earlier this year, BitGo, alongside blockchain firm AlphaPoint, developed an open-source blockchain for Britain’s Royal Mint and Chicago-based CME Group’s gold trading platform. The blockchain platform is currently in live testing among major financial institutions and will enable trading of Royal Mint Gold (RMG), a proposed gold-backed cryptocurrency.
BitGo also added Civic‘s know-your-customer (KYC) services to its new RMG wallets. Civic’s KYC software will scan and verify documents, such as passports and utility bills, provided by investors in RMG tokens, to prove their identities and ensure compliance with anti-money-laundering laws.