Galaxy Digital backs $50M funding spherical for crypto staking outfit Figment
Mike Novogratz’s funding administration agency Galaxy Digital has reportedly participated in a $50 million funding spherical for Figment, a crypto staking startup.
According to Bloomberg on Monday, Galaxy Digital joined traders like Anchorage and Bonfire Ventures in a Series B funding spherical led by Senator Investment Group and Liberty City Ventures.
The firm is now reportedly price about $500 million following the recent injection of funding capital.
Commenting on the funding spherical, Lorien Gabel, CEO of Figment, mentioned that the funding marks a “new chapter” for the agency.
The announcement additionally included a quote from Novogratz describing the yield producing potential of proof-of-stake (PoS) as an “important catalyst” in incentivizing larger institutional curiosity in digital belongings.
PoS is an alternate consensus protocol to proof-of-work that replaces the computational necessities for transaction validation within the latter with a system primarily based on the validator’s stake within the community.
Indeed, Figment reportedly stakes greater than $7 billion price of digital belongings for over 100 institutional shoppers and is trying to upscale its workforce to additional develop its enterprise operations.
Related: JPMorgan report: Eth2 might kick-start $40B staking trade by 2025
Novogratz’s feedback about PoS driving institutional adoption of digital belongings are already taking part in out within the crypto house. Companies like European telecom big Deutsche Telekom are concerned within the cryptocurrency staking enviornment.
As beforehand reported by Cointelegraph, Deutsche Telekom just lately tapped Coinbase Custody as the popular custodian of its staked Celo (CELO) tokens. Indeed, the corporate can be a validator on the Celo community through its T-Systems MMS subsidiary.
Back in July, Swiss-licensed digital asset financial institution Sygnum turned the primary financial institution to supply Ethereum 2.0 staking companies to institutional shoppers. Indeed, Ethereum’s transition to PoS has been tipped to have profound implications for the rising “Staking as a Service” market.