Another blockchain bet! Goldman Sachs Invests $5 Million in Blockdaemon

This is another bet by the bank, following its investment in crypto data company Coin Metrics last month, demonstrating its commitment to the blockchain space.

Another blockchain bet! Goldman Sachs Invests  Million in Blockdaemon

Wall Street financial giant Goldman Sachs has just invested $5 million in blockchain company Blockdaemon, another bet by the bank since it invested in crypto data company Coin Metrics last month, demonstrating its commitment to the blockchain space.

Blockdaemon, a company that creates and hosts blockchain network nodes, was founded in 2017 and is based in New York. The company raised $28 million in its first round of funding, led by Greenspring Associates, with participation from Goldman Sachs, BlockFi, Voyager Digital, Uphold and others, including a $5 million investment from Goldman Sachs. Goldman Sachs will also join Blockdaemon as a “board observer”.

Blockdaemon CEO Konstantin Richter said in an interview that the company plans to use the funds raised to double its headcount to 100 by the end of the year, mainly by hiring engineers and making acquisitions.

Blockdaemon has seen rapid growth over the past year and has won clients such as JPMorgan Chase and Citi, and now has more than 100 institutional clients, including cryptocurrency companies and traditional financial services firms. “Our sales are 10 times higher than they were a year ago, mostly for new institutions entering the space,” Richter said.

He also said Blockdaemon reported first-quarter net income of $18 million on revenue of about $24 million. Companies such as PayPal Holdings Inc., Robinhood Markets Inc and E*Trade have sought its services to expand blockchain and cryptocurrency offerings.

Goldman Sachs has been making a lot of moves in the blockchain space lately. Last month the bank led a Series B round of funding for cryptocurrency and blockchain data provider Coin Metrics for $15 million.

In addition, Goldman Sachs has formally established a cryptocurrency trading team, according to an internal memo from May. The bank said it is working to expand its market presence in the cryptocurrency space.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/another-blockchain-bet-goldman-sachs-invests-5-million-in-blockdaemon/
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