(Bloomberg) -- Bitcoin servicer NYDIG raised $1 billion in its latest funding round, highlighting Wall Street’s increasing interest in the crypto space.
The firm, which counts some of the biggest Wall Street banks as its partners, was d at more than $7 billion in the round joined by existing investors including Morgan Stanley.
The funding is tied for the second largest crypto- or blockchain-related venture capital deal of the year with FTX Trading Ltd.’s $1 billion round in July, after Robinhood Markets Inc.’s $3.4 billion raise in January, according to PitchBook data.
The New York City-based firm offers private wealth clients of Wells Fargo & Co, JPMorgan Chase & Co., and Morgan Stanley access to Bitcoin funds it both manages and safekeeps.
Growth equity firm WestCap led the round, with participation from Bessemer Venture Partners, MassMutual, FIS, and others.
A subsidiary of asset manager Stone Ridge Holdings Group, NYDIG plans to use the funding to develop its Bitcoin platform and accelerate onboarding clients. In October, it facilitated a Bitcoin investment for Houston Firefighters’ Relief and Retirement Fund, a public pension.
NYDIG expects about a 1,000 banks, credit unions, fintech companies and retailers will offer crypto-related products through the company in 2022, according to Patrick Sells, chief innovation officer. “Everyone’s exploring additional use cases actively,” Sells said in an interview.
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