Currently valued at more than $500 million, the cryptocurrency staking service platform, Galaxy Digital may be aiming to expand its employees and commercial operations.
Galaxy Digital, the investment management firm founded by Mike Novogratz, is said to have participated in a $50 million funding round for Figment, a cryptocurrency staking platform.
The company Galaxy Digital has joined investors such as Anchorage and Bonfire Ventures in a Series B investment round led by Senator Investment Group and Liberty City Ventures, according to a report published on Monday by Bloomberg.
Following the recent infusion of new investor funds, the company is now estimated to be worth approximately $500 million.
Lorien Gabel, the CEO of Figment, commented on the investment round, saying that it represents the beginning of a “new chapter” for the company.
Additionally, a remark from Novogratz was included in the announcement, in which he described the proof-of-stake (PoS) technology’s yield-generating potential as a “important catalyst” in encouraging increased institutional investment in digital assets.
It is a proof-of-stake consensus protocol that, in contrast to proof-of-work, does not rely on computing requirements for transaction validation, but instead relies on the validator’s stake in the network as a basis for decision-making.
To be more specific, Figment is said to have staked more than $7 billion in digital assets for more than 100 institutional clients, and the company is trying to grow its employees in order to further expand its commercial operations.
The implications of Novogratz’s views regarding proof-of-stake (PoS) promoting institutional adoption of digital assets are already being felt in the cryptocurrency market. In the bitcoin staking market, companies such as the European telecom giant Deutsche Telekom are active participants.
Coinbase Custody has been selected by Deutsche Telekom as the preferred custodian for its staked Celo (CELO) tokens, as previously reported by Cointelegraph. Indeed, the company’s T-Systems MMS subsidiary serves as a validator on the Celo network as part of its overall network strategy.
The Swiss-licensed digital asset bank Sygnum became the first bank to offer Ethereum 2.0 staking services to institutional clients when it launched its services in July. Indeed, the move of Ethereum to proof-of-stake (PoS) has been predicted to have significant ramifications for the growing “Staking as a Service” business.
