BitGo, a solution to help businesses use cryptocurrencies, has closed a $42.5m Series B financing round led by Valor Equity Partners.
Other participation to the round came from DRW and angel investors, David Sacks and Bill Lee.
BitGo enables businesses to access digital currencies within a regulated economy. The technology hands security, compliance and architectural problems associated with blockchain, allowing institutions to integrate digital currencies to their ecosystem.
The company helps to set up wallets to handle the tokens and monitor all transactions for audit logs, but also helps to set up private blockchains and a secure API.
Currently the platform helps to power $8bn in digital transactions each month and is used by companies across the globe. Some of the company’s clients include CME Group, and The Royal Mint.
Proceeds from the capital injection will be used to boost the use of its technology by financial institutions.
BitGo CEO Mike Belshe said, “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.”
Following the transaction, Valor Equity Partners founder and chief investment officer Antonio Gracias and Yammer founder David Sacks will join BitGo’s board of directors.
This new wave of capital brings the company’s total funding to around $54.2m, following the company’s $12m Series A in 2014. The previous funding round was led by Redpoint Ventures, and also saw participation from Bridgescale Partners, Radar Partners, Founders Fund, Bitcoin Opportunity, Liberty City Ventures, Crypto Currency Partners, A-GRade Investments, and a group of angels.
Earlier in the year, Valor co-led the $140m Series D into financial operating system Addepar. The company raised the capital to support the product expansion and its customer base.
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