Institutional crypto platform BitGo, recently valued at $1.75 billion, has announced the acquisition of private securities investment firm Brassica.
Perspective: Following the acquisition, BitGo plans to expand into the private securities space and focus on the digitization of the alternative asset industry.
“We currently have a dichotomy in financial services — one side deals with traditional securities and the other deals with up-and-coming, blockchain-based assets and cryptocurrencies,” said BitGo CEO Mike Belshe in an announcement shared with TheStreetCrypto. “With this acquisition, BitGo becomes the first major financial services firm to be able to provide comprehensive infrastructure support for both traditional private securities and blockchain-based assets.”
More details: BitGoraised $100 million in 2023 at a valuation of $1.75 billion, establishing it as one of the largest digital assets firms in the world. Since its launch in 2013, it has been focused on institutional crypto services, including custody.
With the acquisition ofBrassica, which became an independent company last year, BitGo will be able to incorporate leading alternative assets infrastructure into its offerings.
“Joining forces with BitGo is a significant step towards Brassica’s vision of building the financial infrastructure of the future,” Youngro Lee, founder and CEO of Brassica, said in the announcement. “Our strength lies in our ‘one-stop-shop’ approach of providing API-enabled infrastructure for the alternative assets industry.”
The context: The global alternatives market is projected toexceed $24 trillion in value in the next few years and its increasing digitization is a significant opportunity for firms like BitGo.
As family offices and institutional investors seek higher returns and diversification in a low-interest-rate environment, blockchain- and crypto-focused alternatives are poised for growth.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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