Anchorage Digital has closed a $350 million funding round, valuing the cryptocurrency custody firm at over $3 billion.
The Series D funding round was led by global investment firm KKR and included Goldman Sachs, Alameda Research and Andreessen Horowitz among other big names.
Multibillion-dollar valuations are becoming the norm for crypto custody specialists like San Francisco-based Anchorage, which will manage digital assets for institutions looking to spice up their clients’ portfolios going forward. Take custody-tech providers like Fireblocks and U.K.-based Copper, both of whom recently closed funding rounds, for example.
“As more and more institutions look to add crypto services into their offerings, we find ourselves at an inflection point,” Anchorage co-founder Diogo Mónica said in a statement, “This funding positions Anchorage Digital to meet the unprecedented institutional demand for this rapidly evolving market.”
This will be KKR’s first direct equity investment in a digital asset company, through its Next Generation Technology Growth Fund II.
“As a pioneer in enabling institutional investors to access digital assets, Anchorage has built a best in class, institutional grade digital asset platform that combines the best practices of both modern security and usability,” said Ben Pederson of KKR’s Technology Growth Equity Team in a statement.
Goldman Sachs is known for having a smart digital assets team, one of the leading banks in the space.
The bank’s backing is testament to Anchorage’s dynamic year, which has included receiving a U.S. federal banking charter from the Office of Comptroller of the Currency, as well as bagging an $80 million Series C round.
“We are certain Anchorage will be a crucial part of the digital asset infrastructure and we are excited to be an investor,” Goldman Sachs Head of North America Digital Assets Oli Harris said in a statement.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.