Goldman Sachs and Citadel back crypto firm Digital Asset in $135 million round

Digital Asset, a prominent player in the cryptocurrency sector, announced on Tuesday that it has successfully secured $135 million in funding from esteemed financial institutions. This significant investment round was co-led by DRW and Tradeweb, with participation from notable firms such as Goldman Sachs, BNP Paribas, and Citadel Securities, owned by Ken Griffin. This influx of capital underscores the increasing involvement of major financial entities in the evolving landscape of cryptocurrencies. Once viewed with skepticism due to associations with fraud and illicit activities, digital assets are gradually gaining acceptance as a legitimate asset class. Renowned banks like JPMorgan Chase and Goldman Sachs are now exploring the potential of digital currencies, with JPMorgan recently introducing its own stablecoin, known as "JPMD." "With the expanding engagement from global financial institutions, we believe this funding round will help us reinforce our position as a pivotal player in digital finance," stated Yuval Rooz, CEO and co-founder of Digital Asset, during an interview with CNBC. The company offers a variety of digital asset services to high-profile clients, including Wall Street giants like Goldman Sachs and Citadel. Founded in 2014 by trader-turned-entrepreneur Yuval Rooz, Digital Asset positions itself against competitors like Ripple, R3, and Consensys. The fresh capital will primarily be directed towards promoting the adoption of the Canton Network, a public blockchain initially developed by Digital Asset and now available as open-source software. This innovative platform enables financial institutions to transfer assets and data while adhering to regulatory and privacy standards. Currently, banks and trading firms are leveraging the Canton Network to tokenize a range of real-world assets, including bonds, commodities, and money market funds. Rooz emphasized, "This funding will empower us to build on the growing momentum surrounding the Canton Network and expedite the onboarding of high-quality assets, turning blockchain’s transformative potential into a reality on an institutional scale." According to Rooz, the network is now supporting trillions of dollars in tokenized assets, marking a significant milestone in the realm of digital finance.