According to unnamed sources, cryptocurrency company Galaxy Digital, run by Michael Novogratz, is actively negotiating the purchase of the regulated custodian of BitGo.
Four anonymous sources claim that Galaxy Digital has entered an active stage of negotiations with the US-regulated cryptocurrency custodian BitGo regarding the purchase of the service. Galaxy Digital and BitGo declined to comment. Last December, Fortune sources reported that payment giant PayPal was in talks to buy BitGo, but they fell through. As a result, PayPal bought the custodian service Curv.
“Galaxy is not a custodian, so buying BitGo makes sense,” said one source. BitGo also operates WBTC, a service that wraps BTC in Ethereum-compatible tokens.
The robust growth of cryptocurrencies since the end of last year has resulted in a noticeable increase in activity involving custodian firms, which is a key component of the institutionalization of digital asset trading. The details of the deal are unclear at this stage, but a traditional financial firm could be involved alongside Galaxy.
According to a source at Goldman Sachs bank, BitGo is one of the custodians being considered by the bank, which will facilitate access to BTC for the organization’s wealthy clients. Galaxy recently reported that it generated $ 335 million in Q4 2020, up 1,175% from a year earlier. Novogratz also said the company plans to go through a US listing in the second half of this year.
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