Říj 18

Goldman Sachs and Mike Novogratz Invest in Cryptocurrency Startup BitGo

BitGo, a company which provides institutional-grade investors with compliance, security, and custodial solutions for cryptocurrencies has closed its Series B funding round bringing in $58.5 million. Goldman Sachs and Novogratz’ Galaxy Digital Ventures LLC contributed with $15 million of said amount.


Investing in a $1 Trillion Cryptocurrency Wallet

In an official release from today, BitGo disclosed that it has successfully finalized its Series B funding round, bringing in a total amount of $58.8 million USD.

The lineup of investors includes companies like Valor Equity Partners, Craft Ventures, Redpoint Ventures, DRW, and, most recently – Mike Novogratz’ Galaxy Digital Ventures LLC and Goldman Sachs’ Principal Strategic Investments Group.

According to Bloomberg, Novogratz and Goldman invested a total of $15 million in this round of funding. The money is designated to support BitGo’s development of a $1 trillion cryptocurrency wallet.

Notes BitGo CEO, Mike Belshe:

This strategic investment from Goldman Sachs and Galaxy Digital Ventures validates both our market opportunity and unique position. No one is better positioned than BitGo to serve institutional investors who want to trade cryptocurrencies and digital assets. That’s why we’re focused on figuring out what it takes to secure a trillion dollars. The market’s not there yet but our job is to be ready first.

Novogratz Backtracks

The former Goldman Sachs partner sat down with CNBC’s “Cryptotrader” Ran Neu-Ner in July, outlining that the next price rally will require a “custody from a trusting source.”

Novogratz

At the same time, the permabull was quite straightforward on his position regarding existing custodial solutions at the time, namely BitGo, saying:

If I’m at the state of Wisconsin, I’m not going to risk my job on a company called BitGo.

Speaking on his most recent multi-million dollar investment–in the company he had no confidence in just four months ago–Novogratz said:

We have been impressed with BitGo’s world class team, their deep technical understanding of digital assets as well as their ability to deliver institutional-quality products to investors. Our team is excited to support BitGo as it enters into this next phase of growth.

Bitcoin (BTC) price 00 remains unfazed by the positive news in what has been an auspicious week for cryptocurrency so far and amid rising Bitcoin futures volumes on the CME.

“Institutional movement into the space continues …,” commented Bitcoin entrepreneur Alan Silbert.

What do you think of Goldman Sachs’ and Galaxy Digital Ventures’ most recent investment in BitGo? Don’t hesitate to let us know in the comments below!


Images courtesy of Shutterstock, Bitcoinist archives

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Zář 15

SEC and Institutional Investor Backing: A Question of Custody

One of the last major hurdles to the widespread institutional adoption of cryptocurrency is the issue of custody — where to securely store all those high-paying clients’ assets. Fortunately, several companies are currently working on a solution to this piece of the puzzle.


A Universal Question

Custody is a question that perhaps anyone who has owned crypto has considered — or failed to at their own peril. I.e., Where am I going to keep my Bitcoin (BTC) 00 — or other tokens —safe?

In the early days, some were happy enough to leave their crypto in the safe hands of the exchange where it was bought. Until a series of high profile hackings highlighted just how untrustworthy those hands may be.

The crypto community possesses online desktop and mobile wallets, hardware wallets, and even paper wallets, depending on how sensible/paranoid we are. Now imagine dealing with millions of dollars worth of someone else’s money.

Assured Security

Institutional investors are accustomed to having their assets safely stored or FDIC insured. For institutions holding assets of over $150 million dollars, use of a third party custodian is an SEC requirement. So for larger companies, self-custody (managing their own private keys) is not even an option.

Smaller retail and family offices may utilize offline cold-storage methods or even keep assets on an exchange. But there is a clear need for some entity to fill the role of secure, regulated custodian. Managing private keys in the way that Wall Street custodians manage traditional asset classes.

Regulatory Scrutiny

One of the companies aiming to fill that niche is BitGo. Yesterday BitGo became the first regulated service for storing digital assets when it received a state trust company charter from the South Dakota Division of Banking.

https://medium.com/@mikebelshe

CEO and Co-founder, Mike Belshe said:

This is the missing piece for infrastructure — it’s a treacherous environment today… Hedge funds need it, family offices need it, they can’t participate in digital currency until they have a place to store it that’s regulated.

The Alternatives

Aside from BitGo, there are several companies vying for a place at the custodial table. They include Coinbase, Gemini, Ledger and ItBit, who are all developing solutions. Nomura partnered with Ledger and Global Advisors to announce plans for a custody solution in May. Even Goldman Sachs recently announced plans for their entry into the market.

An influx of institutional investors could be the exact boost the current crypto-market needs. For the SEC to get on board and realize this vision, there really is no alternative to a regulated custodian service.

What are your thoughts on custodial services in the crypto landscape?


Images courtesy of Medium, Shutterstock.

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Úno 17

Multi-sig Wallet BitGo Integrates with ShapeShift.io API

Source: bitcoin

Multi-sig

SWITZERLAND, Feb 17, 2016 – ShapeShift.io, an instant Bitcoin and blockchain exchange service, has been integrated into the multi-sig Bitcoin wallet, BitGo. The ShapeShift API integration allows BitGo wallet users to send or receive all leading cryptocurrencies without leaving the wallet.

Disclaimer: This is a press release. Bitcoinist is not responsible for these companies’ products and/or services.

Multi-Sig Wallet for Altcoin Exchange

 

“We’re constantly impressed with the ShapeShift product for its speed and ease of use,” said BitGo CEO Mike Belshe, “BitGo customers can now instantly transfer their Bitcoin into any alt-currency with just a few clicks!”

See how BitGo works with ShapeShift in this quick video:

The relationship between the companies has continued to strengthen. ShapeShift previously integrated BitGo’s “Instant” feature to enable zero-confirm transactions from BitGo wallet users to ShapeShift.

Developed primarily as an API platform, ShapeShift has been integrated into over 45 partner services throughout the blockchain industry.

For businesses interested in learning more about ShapeShift API integration, please contact emily@shapeshift.io.

About ShapeShift.io

ShapeShift is how digital asset exchange should work. From start to finish users can convert digital currencies in seconds, with no account required. No emails or passwords. No lengthy sign­up process. No accounts. No bid and ask orders. No friction. ShapeShift’s goal is to be the fastest, safest, and most convenient way to trade digital assets. See more at:

About BitGo

BitGo is the leader in Bitcoin security and a pioneer of multi-signature technology. The company offers BitGo Enterprise, an enterprise-grade, multi-sig, multi-user Bitcoin wallet, and BitGo Platform API, a robust set of tools and services to access the underlying platform. BitGo recently announced handling of $1 billion of Bitcoin transactions per quarter. The company was founded by veterans in online security, digital currency, and financial technology, and has raised more than $14 million in financing to date. Learn more at www.bitgo.com.

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Multi-sig Wallet BitGo Integrates with ShapeShift.io API

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Led 20

BitGo Instant: ‘Eliminates Bitcoin Transaction Delays’

Source: bitcoin

Transaction

PALO ALTO, CA — Today, BitGo announced the launch of its new service, BitGo Instant. BitGo claimed that this service is “the world’s first way to safely receive zero-confirm Bitcoin transactions with a full financial guarantee. Along with the announcement of its launch, BitGo reported that it has a “strong list of initial partners,” to recognize the zero-confirmation transactions. These partners include, Bitfinex, Bitstamp, CoinHako, FoldApp, Genesis Trading, Kraken, ShapeShift and Unocoin. 

Also read: Protect Yourself From these ShapeShift.io Based Scams

BitGo Instant: A Guaranteed Zero-Confirmation Transaction

BitGo Instant with a multi-signature wallet implementation. BitGo Instant wallets consist of 3 keys: one held by BitGo, one held by the user, and one held on behalf of the user by a third-party Key Recovery Service (KRS). Two signatures are required on every transaction on a BitGo wallet, and in the usual case this would be done by BitGo and by the user. BitGo claimed that it will never co-sign a transaction that is a duplicate spend, leaving only the possibility of the user and the KRS “conspiring” to double spend. BitGo will attempt to prevent this by having a contract with any KRS it uses that requires the KRS to give BitGo advance notice of any signatures it makes.

BitGo has guaranteed these zero-confirmation transactions. In the event of financial loss from a BitGo Instant transaction, the company said that customers will be able to file a claim and will “be compensated in full by BitGo.”

The company is marketing its new service as a good way to avoid losing value to bitcoin’s volatile exchange rate. According to BitGo, it was unsafe to accept zero-confirmation transactions before its BitGo Instant service, because it was “possible for the sender to spend the money elsewhere before the transaction is confirmed.” This risk led many Bitcoin businesses to require multiple confirmations before crediting a deposit. BitGo said that these wait times were inconvenient and risky in themselves, because “in the volatile Bitcoin market, a delay in moving funds to an exchange can mean the loss of thousands of dollars on a large transaction.”

Bitstamp CEO Nejc Kodrič — one of BitGo Instant’s initial partners — was excited about the announcement of this new service. Kodrič told press:

“BitGo Instant is an elegant solution that lets users send bitcoin quickly and easily. Many bitcoin businesses would love to be able to accept zero-confirm transactions, but it’s been too risky to consider until now. We’re excited to be supporting this much-needed innovation from day one.”

BitGo is a multi-signature technology companies, and offers a suite of services aimed at facilitating secure bitcoin transactions. The company offers BitGo Enterprise, an enterprise-grade, multi-sig, multi-user Bitcoin wallet, and BitGo Platform API, a robust set of tools and services to access the underlying platform. BitGo recently announced handling of $1 billion of bitcoin transactions per quarter. The company was founded by veterans in online security, digital currency, and financial technology, and has raised more than $14 million in financing to date.

What do you think about BitGo Instant? Let us know in the comments below!


 

Featured image courtesy of BitGo.

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BitGo Instant: ‘Eliminates Bitcoin Transaction Delays’

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