Galaxy Digital Backs $ 50 Million Funding Round for Crypto Staking Company Figment

Mike Novogratz’s investment management firm Galaxy Digital is said to have participated in a $ 50 million round of funding for Figment, a...



Mike Novogratz’s investment management firm Galaxy Digital is said to have participated in a $ 50 million round of funding for Figment, a crypto staking startup.

According to Bloomberg on Monday, Galaxy Digital joined investors like Anchorage and Bonfire Ventures in a Series B funding round led by Senator Investment Group and Liberty City Ventures.

The company is now said to be worth around $ 500 million as a result of the new investment capital injection.

Commenting on the funding round, Lorien Gabel, CEO of Figment, said the funding marked a “new chapter” for the company.

The announcement also included a quote from Novogratz describing the yield-generating potential of Proof of Stake (PoS) as a “significant catalyst” to spark greater institutional interest in digital assets.

PoS is an alternative consensus protocol to proof of work that replaces the computational requirements for validating transactions in the latter with a system based on the participation of the validator in the network.

Indeed, Figment is said to have staked more than $ 7 billion in digital assets for more than 100 institutional clients and is looking to increase its workforce to further expand its business operations.

Related: JPMorgan Report: Eth2 Could Launch $ 40 Billion Staking Industry By 2025

Novogratz’s comments on PoS leading to institutional adoption of digital assets are already happening in the crypto space. Companies like European telecommunications giant Deutsche Telekom are involved in the field of cryptocurrency staking.

As previously reported by Cointelegraph, Deutsche Telekom recently chose Coinbase Custody as its privileged custodian of its Celo tokens (CELO) staked. Indeed, the company is also a validator on the Celo network via its subsidiary T-Systems MMS.

In July, the Swiss licensed digital asset bank Sygnum becomes the first bank offer Ethereum 2.0 staking services to institutional clients. Indeed, the transition from Ethereum to PoS would have profound implications for the emerging “Staking as a Service” market.