Bitcoin services provider NYDIG bags $1B led by WestCap

abdelaziz Fathi

New York Digital Investment Group (NYDIG) has secured another $1 billion in a growth capital round that values the institutional crypto shop at more than $7 billion.

NYDIG

The latest capital injection was led by former Airbnb Chief Financial Officer Laurence Tosi’s growth equity firm, WestCap. It also saw participation from Bessemer Venture Partners and FinTech Collective with an assist from existing investors Affirm, FIS, Fiserv and Morgan Stanley. They join life insurance and annuity-focused firms New York Life and MassMutual as backers of the firm.

NY-based trading and custody services provider said the new capital will be utilized to further develop its Bitcoin platform using recent upgrades to the flagship cryptocurrency’s protocol with capabilities such as Lightning payments.

“NYDIG plays a unique role in the industry, empowering companies of all types to incorporate Bitcoin in a secure and compliant way. We are proud to partner with Robby and his outstanding NYDIG team as they forge new paths to accessibility and further accelerate Bitcoin adoption,” Scott Ganeles, partner at WestCap, said in a statement.

NYDIG bags $1.3 billion this year

NYDIG builds bitcoin-focused investment and custody products for institutional investors. It is fast approaching $10 billion in assets under management, and recently teamed up with US Bancorp (US Bank), Wells Fargo and JPMorgan to offer bitcoin funds to their high net worth clients.

The latest funding round brings the sum raised by NYDIG over the past 10 months to $1.3 billion. This amount is set to help the company advance its Bitcoin-oriented initiatives in various sectors, including asset tokenization and smart contracts.

In addition to these Bitcoin-related business initiatives, NYDIG, which is the cryptocurrency arm of Stone Ridge, is also looking to introduce an ETF product involving Bitcoin. NYDIG already filed Bitcoin ETF registration documents with the US Securities and Exchange Commission.

“Our roster of partnerships and strategic investors lays the foundation for NYDIG to become the leading provider of Bitcoin solutions for businesses in any industry, and this new equity capital will further accelerate progress towards making this exciting network accessible – and useful – to all,” said Robert Gutmann, co-founder and CEO of NYDIG, in a statement.

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