BitGo assets hit $16 billion as institutional adoption grows

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BitGo, whose investors include Galaxy Digital Ventures, Goldman Sachs and Valor Equity Partners, reported Wednesday that digital assets under custody have surpassed $16 billion for the first time, offering further validation that institutional demand has arrived. 

In an official press release, BitGo said institutional investors are seeking exposure to digital assets “for custody, trading and lending.”

CEO Mike Belshe commented:

“We’re seeing unprecedented interest from institutional investors as a result of the pandemic’s economic impact, as well as Bitcoin’s extraordinary performance.”

Founded in 2013 as a digital wallet service, BitGo has expanded to provide liquidity, custody, and security solutions for 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 an acquisition target of PayPal Inc. Representatives from both companies refused to comment at the time.

Demand for institutional-grade crypto has been on the rise this year, as Bitcoin’s digital gold narrative continues to attract new investors. Companies like Grayscale, PayPal, MicroStrategy, Ruffer Investment Group and MassMutual have been at the center of the adoption drive.

As Cointelegraph reported earlier this week, Anthony Scaramucci’s multi-billion-dollar hedge fund, SkyBridge Capital, has also submitted formal paperwork with the Securities and Exchange Commission to launch a new Bitcoin fund.

BitGo did not immediately respond to request for comment.