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In addition, the two companies announced a strategic alliance that will enable First Foundation to provide clients with safe access to Bitcoin-related investment products.
First Foundation Inc, a publicly traded financial services firm, has made a strategic investment in New York Digital Investment Group as part of a larger initiative to provide investors with safe access to Bitcoin (BTC) investment goods.
“We believe digital assets are an important part of the future landscape of financial services and we are pleased to be a part of its evolution as we seek to serve the growing needs of our clients,” said First Foundation CEO Scott Kavanaugh.
Regarding his firm’s investment in NYDIG, Kavanaugh explained:
“NYDIG is at the forefront of the industry from a regulatory and security perspective which makes them the perfect partner as we seek to help bring Bitcoin solutions into the mainstream.”
The terms of the deal were not disclosed.
The Bitcoin-focused collaboration would allow First Foundation to provide clients with safe ways to invest in digital assets. First Foundation is now collaborating with payment processor Fiserv to incorporate BTC into its current banking arrangements.
Over the last year, institutional demand for Bitcoin has increased dramatically. The entry of big players such as MicroStrategy, Tesla, and MassMutual has made Bitcoin investments more appealing to institutional investors who were previously sceptical of the digital asset class.
NYDIG has established a significant footprint in the digital currency industry, having recently raised $100 million for its BTC insurance initiative. Starr Insurance and Liberty Mutual Insurance also contributed to the increase. Over the past six months, NYDIG has secured $450 million for BTC-related campaigns in insurance, finance, and renewable energy.
According to Robert Gutmann, CEO of NYDIG, state-owned venture funds could be the next to invest in Bitcoin. The disclosure appears to have been confirmed by Raoul Pal of Real Vision Finance, who stated that Singapore’s sovereign wealth fund has already invested in Bitcoin.