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Goldman Sachs has contributed $28 million to Blockdaemon’s Series A fundraising round, and has invested $5 million in the blockchain infrastructure startup.
Blockdaemon, a blockchain infrastructure business, has received $28 million in Series A financing from Goldman Sachs.
Greenspring Associates spearheaded the fundraising, which featured participation from crypto lending startup BlockFi and crypto-asset dealer Voyager Digital Ltd, as well as a $5 million investment from Goldman Sachs.
Goldman Sachs is a global investment bank based in the United States with a nett value of $131 billion. The financial behemoth looks to be paying close attention to cryptocurrency recently. Goldma led a $15 million funding round in blockchain analytics business Coin Metrics in May, and the company also began Bitcoin futures trading for institutional clients same month.
For large clients like as Goldman Sachs, Blockdaemon provides staking and node infrastructure. According to the business, it has averaged more over $5 billion in staked assets over the last year and expects that amount to exceed $50 billion by the end of 2021.
The firm offers exposure for institutional clients to networks such as ETH 2.0, Bitcoin, Polkadot, and various protocols such as Dfinity and Near through the Blockdaemon marketplace.
According to a June 8 announcement, Blockdaemon will use the funding to expand node infrastructure services and acquire new staff members and developers. Oli Harris, North America, head of digital assets at Goldman Sachs said:
“We are excited to join them as they continue to provide institutional-grade blockchain technology to all that want to leverage it.”
Despite the investment bank’s warming to crypto through investments and expanding services, the firm’s public stance on crypto has been equivocal.
According to a study conducted by Goldman Sachs on June 8, Bitcoin was the least prefered investment class among 25 CIOs from Asian hedge funds.
Earlier this month, Goldman Sachs’ global director of commodities research, Jeff Currie, knocked down claims that Bitcoin is “digital gold” after describing Bitcoin as a “risk-on” asset akin to copper.
However in May, Goldman Sachs analyst Will Nance claimed that investing in Coinbase stock was the best way to gain exposure to the crypto market and avoid its volatility following the recent crypto downturn.