NYDIG announces $1 billion funding round, valuing company at $7 billion
December 14, 2021, 9:21AM EST
1 min read
Crypto financial services firm NYDIG announced Tuesday the completion of a $1 billion funding round that values the company at $7 billion.
The round was led by growth equity firm WestCap with participation from other backers like Bessemer Venture Partners, FinTech Collective, Affirm, Fiserv, MassMutual, New York Life, Morgan Stanley, and FIS.
NYDIG said it will use the fresh capital to expand its institutional-grade bitcoin platform including support for Lightning Network payments, smart contracts, and asset tokenization, the announcement stated.
The funding announcement comes on the back of significant growth for NYDIG especially in its push to enable access to bitcoin for U.S. bank customers. A significant piece of the firm's business is helping large institutions and investors access the bitcoin market. Notably, NYDIG announced in December last year that it had sold a minority stake in its business to insurance giant Mass Mutual, while helping the company to plough $100 million into bitcoin.
In October, NYDIG acquired British bitcoin outfit Bottlepay in a $300 million stock purchase. Apart from these partnerships, NYDIG is also looking to expand its workforce with open roles advertised for job functions including those pertaining to KYC and compliance.
Tuesday's announcement is also another pointer to the massive investment pull associated with crypto businesses in recent times. Despite the prevailing market downturn, crypto-related businesses continue to attract significant venture capital backing at astronomical valuations.
Today the always-on demands of online markets have to be matched with the ability to access opportunities instantly and with no limits. Historically correspondent banks would move large sums of money for those needing to transfer funds while creating bottlenecks of unnecessary friction.
Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.