BitGo, whose investors include Galaxy Digital Ventures, Goldman Sachs and Valor Equity Partners, reported on Wednesday that digital assets in custody have exceeded $ 16 billion for the first time and offer further validation of that institutional demand has arrived.
In an official press release, BitGo said institutional investors are seeking exposure to digital assets “for safekeeping, trading and lending.”
CEO Mike Belshe commented:
“We are seeing unprecedented interest from institutional investors as a result of the economic impact of the pandemic as well as Bitcoin’s extraordinary performance.”
Founded in 2013 as a digital wallet service, BitGo has expanded to offer liquidity, custody and security solutions to institutional investors. The company claims to process over 20% of all global Bitcoin (BTC) transactions and supports over 300 digital assets.
BitGo made headlines a few months ago after anonymous sources told Bloomberg that the company had become a takeover target for PayPal Inc. Representatives from both companies declined to comment at the time.
Demand for institutional quality crypto has been rising this year as Bitcoin’s digital gold narrative continues to attract new investors. Companies like Grayscale, PayPal, MicroStrategy, Ruffer Investment Group and MassMutual has been at the center of the adoption drive.
As Cointelegraph reported earlier this week, Anthony Scaramucci’s multi-billion dollar hedge fund, SkyBridge Capital, also submitted formal paperwork with the Securities and Exchange Commission to launch a new Bitcoin fund.
BitGo did not immediately respond to a request for comment.