BitGo Raises $100 Million In Funding, Ignites Global Expansion Drive In Crypto Custody Sector

Key Points:

• BitGo secures $100M in funding, valuing it at $1.75 billion, after dropping the Prime Trust acquisition.
• Funds to expand global presence and acquisitions in the crypto custody sector.
• BitGo’s regulatory focus drives growth amid legal challenges and market fluctuations.

Crypto custody leader BitGo has successfully secured $100 million in a Series C funding round, bolstering its valuation to an impressive $1.75 billion, according to a report by Bloomberg.

This funding triumph follows BitGo’s recent decision to abandon its proposed acquisition of rival Prime Trust. Prime Trust, grappling with considerable financial and regulatory obstacles, is reportedly poised to downsize its workforce by up to 75% due to these challenges.

BitGo’s substantial new capital infusion is earmarked for strategic acquisitions, enabling the expansion of the firm’s secure, regulated custody, wallet, and infrastructure solutions on a global scale.

CEO Mike Belshe emphasized that these funds would facilitate meeting the burgeoning demand for custody services, empowering institutions and businesses to participate effectively in the cryptocurrency landscape.

Despite a tumultuous year for US crypto enterprises, BitGo’s achievement highlights the ongoing appetite for funding within the sector.

The firm, renowned for safeguarding crypto assets through innovative measures like physical vaults, presently serves as the custodian for the creditors of the insolvent FTX crypto exchange.

Its clientele further encompasses entities ranging from financial services company Swan Bitcoin to blockchain developer Mysten Labs Inc. and global apparel giant Nike Inc.

BitGo’s journey has not been without legal challenges, including terminated deals with players like Galaxy Digital.

However, CEO Mike Belshe attributes the company’s success to its emphasis on maintaining regulatory compliance and licensure, a distinguishing feature in complex and uncertain legal terrain for cryptocurrencies.

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