BitGo, a Palo Alto, CA-based company which makes digital currencies usable for businesses in a regulated economy, raised $42.5m in Series B financing.
The round was led by Valor Equity Partners with participation from David Sacks, Bill Lee, and DRW. In conjunction with the funding, Antonio Gracias, Founder, Managing Partner, and Chief Investment Officer of Valor Equity Partners and board member at Tesla and SpaceX, will join BitGo’s board of directors. David Sacks, Founder/CEO of Yammer and original COO and product leader of PayPal, also joins the board.
The company intends to use the funds to accelerate enabling businesses to integrate digital currencies into their existing financial systems.
Led by Mike Belshe, CEO, and Bill Lee, Chairman of the Board, BitGo provides a technology platform that allows custodial institutions to integrate digital currencies into their existing financial systems. Processing more than $8B monthly, BitGo customers include the largest cryptocurrency exchanges and application providers in the world.
One example is Kingdom Trust, a custodian who services US clients and holds custody of over $12 billion in assets. 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.
Other customers include CME Group and The Royal Mint.