Morgan Stanley-Backed Bitcoin Firm NYDIG Raises $1 Billion
Morgan Stanley-Backed Bitcoin Firm NYDIG Raises $1 Billion
(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 valued 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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