Galaxy Digital, Mike Novogratz’s investment management firm, is said to have participated in a $50 million funding round for Figment, a crypto staking startup.
Galaxy Digital participated in a Series B funding round led by Senator Investment Group, Liberty City Ventures, and Anchorage and Bonfire Ventures.
Following the fresh injection of investment capital, the company is now reportedly worth around $500 million.
Lorien Gabel, CEO of Figment, commented on the funding round, saying that it marks a “new chapter” for the company.
The announcement also included a quote from Novogratz, who described the proof-of-stake (PoS) yield generation potential as an “important catalyst” in incentivizing greater institutional interest in digital assets.
PoS is a consensus protocol that replaces the computational requirements for transaction validation in proof-of-work with a system based on the validator’s stake in the network.
Indeed, Figment is said to have staked more than $7 billion in digital assets for over 100 institutional clients and is looking to expand its workforce to expand its business operations.
Novogratz’s remarks about PoS driving institutional adoption of digital assets are already being felt in the crypto community. Companies such as Deutsche Telekom, a European telecom giant, are involved in the cryptocurrency staking arena.
Deutsche Telekom has chosen Coinbase Custody as its preferred custodian for its staked Celo (CELO) tokens. Indeed, the company’s T-Systems MMS subsidiary is a validator on the Celo network.
Sygnum, a Swiss-licensed digital asset bank, was the first to offer Ethereum 2.0 staking services to institutional clients in July. Indeed, Ethereum’s transition to PoS is expected to have far-reaching consequences for the emerging “Staking as a Service” market.