Investment firm infuses $12 million into BitGo's resources (digital asset platform)
BitGo Raises $12 Million for Enhanced Bitcoin Security
BitGo, a company specialising in security platforms for Bitcoin, has recently secured $12 million in funding. This investment round was supported by a number of notable backers, including Paloma Investments, Redpoint Ventures, Ashton Kutcher's A-Grade Investments, and the Bitcoin Opportunity Corporation.
The funding comes at a time when the security of Bitcoin is a growing concern for both personal users and merchants. As Bitcoin gains traction as a viable form of currency for commercial transactions, the need for robust security solutions becomes increasingly important.
Will O'Brien, CEO of BitGo, emphasises the significance of Bitcoin's security for commercial transactions. In his view, if users cannot trust Bitcoin's security, it will not be able to achieve widespread adoption.
BitGo's approach to Bitcoin security is unique. The company uses a multisignature system, similar to a safe-deposit box. This system requires multiple keys to access a Bitcoin wallet, making it much more difficult for hackers to gain control.
Jeff Brody from Redpoint Ventures compared the need for Bitcoin security solutions to the role Verisign played in ensuring trust for online payments during the growth of e-commerce. Verisign provided certificate authority and infrastructure, and BitGo aims to fill a similar role in the Bitcoin world.
BitGo's most recent funding round follows a $50 million round in 2018, which was also supported by Paloma Investments. This round was specifically focused on Portal to Bitcoin, a Bitcoin-first protocol associated with BitGo through institutional involvement.
With this latest investment, BitGo is well-positioned to continue its work in enhancing the security of Bitcoin for commercial transactions. As Bitcoin becomes more widely used, the need for secure platforms like BitGo's will only grow.
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