Skeptical before about cryptocurrency, Goldman Sachs continues to fund crypto companies. Investment giant recently funded around $28 million to Blockdaemon’s expansion. The more evidence that the New York City-based firm changing its mind to cryptocurrency.
The investment banking giant has joined in on a significant funding round to aid Blockdaemon, a large blockchain firm, to expand.
According to an announcement on Tuesday, the Series A round raised $28 million from investors, including cryptocurrency lender BlockFi Lending LLC, Goldman Sachs, Warburg Serres, Uphold Inc., Voyager Digital Ltd., Illuminate Financial, and Hard Yaka.
Involving Blockdaemon’s funding, Goldman Sachs reveals that it changes its mind on crypto technology.
“Blockchain is a key driver of innovation in the financial services industry and Blockdaemon is powering its infrastructure,” stated Oli Harris, North America head of digital assets at Goldman Sachs. “We are excited to join them as they continue to provide institutional-grade blockchain technology to all that want to leverage it,” he added.
Ironically Goldman Sachs, one of the world’s biggest banks, now warming up to bankless finance. The investment banking giant had already shown interest in cryptocurrency before when Goldman Sachs opened then suddenly closed a crypto trading platform in 2018. Later the bank said that it did not see Bitcoin as an asset.
Blockdaemon is strongly involved in the DeFi (decentralized finance) — a common term for financial products to replace the need for banks. The firm helps companies apply blockchain applications in their work.
However, the Blockdaemon isn’t the first crypto investment for the bank. A month before, Goldman Sachs led a $15 million funding round for Coin Metrics, a cryptocurrency analytics company.
According to Bloomberg, Blockdaemon works with blockchain infrastructure for companies like PayPal, Robinhood Markets, and E*Trade.