Galaxy Digital has agreed to purchase BitGo, one of the world’s largest digital asset custody companies, with $40 billion in assets under management.

“The acquisition of BitGo solidifies Galaxy Digital as a one-stop-shop for institutions, accelerating our quest to institutionalize digital asset ecosystems and blockchain technology,” said Mike Novogratz, Galaxy Digital’s CEO and Founder.

“The strength of the technologies, solutions and people we’ll have as a result of this transaction will unlock unique value for our clients and fuel long-term growth for our combined company,” he added.

BitGo represents over 150 cryptocurrency exchanges and 400 institutional customers, including Ripple, SBI Holdings, Securrency, and NEXO, and processes 30 billion monthly transactions.

It was established in 2013 and has raised $69 million in funding, according to Crunchbase, but we believe the number is higher.

In South Dakota, New York, Switzerland, and Germany, the custody company owns regulated trust companies. Like those of many custody companies, its services are diverse, including prime lending, trading, and fund management.

Custody, customer base, and global scope are all primary additions for Galaxy Digital due to the acquisition.

Galaxy isn’t the first company to express an interest in taking care of a child. It’s a partner in the Nomura custody joint venture Komainu, for example.

Galaxy is a multifaceted digital asset company with a focus on asset management. As Morgan Stanley announced that its clients would invest in Bitcoin, two of the options were Galaxy Digital funds. It’s also a part of Bloomberg’s Galaxy Crypto Index.

Galaxy invests directly and engages in trading and investment banking in addition to asset management.

Its stock is traded on the Toronto Stock Exchange, with a market capitalization of CAD 3.2 billion ($2.6 billion) as of yesterday’s end.

The purchase price would be $265 million in cash (mostly deferred), with the remaining $33.8 million in new Galaxy Digital shares.

Galaxy Digital has announced a reorganization that includes a capital market listing in the United States to lift its profile and assist with potential capital raises.

Its two key companies are registered in the Cayman Islands, even though it is currently listed in Toronto. It intends to form a new company in Delaware to succeed the leading listed company in obtaining a U.S. listing.