“We believe digital assets are an important part of the future financial services landscape and we are excited to be part of its evolution as we seek to meet the growing needs of our customers,” said Scott F. Kavanaugh, CEO of First Foundation.
On his company’s investment in NYDIG, Kavanaugh explained:
“NYDIG is at the forefront of the industry from a regulatory and security perspective, making them the perfect partner to help bring Bitcoin solutions mainstream.”
Terms of the deal were not disclosed.
The Bitcoin-focused partnership allows First Foundation to provide customers with safe avenues to invest in digital assets. First Foundation is also working with processing provider Fiserv to integrate BTC into its existing banking arrangements.
Institutional demand for Bitcoin has grown significantly in the past 12 months. The arrival of major players such as MicroStrategy, Tesla and MassMutual have made BTC investments more palatable for mainstream investors who were once critical of the digital asset class.
NYDIG has established a strong position in the digital currency market and has only recently raised $ 100 million for its BTC insurance initiative. Insurance companies Starr Insurance and Liberty Mutual Insurance contributed to the increase. NYDIG has raised $ 450 million over the past six months for BTC-related insurance, banking and clean energy initiatives.
Robert Gutmann, the CEO of NYDIG, says sovereign wealth funds could be next in line to invest in Bitcoin. That revelation was seemingly verified by Real Vision Finance’s Raoul Pal, who said Singapore’s sovereign wealth fund has already invested in BTC.
First Foundation Inc. (FFWM), a publicly traded financial services company, has made a strategic investment in New York Digital Investment Group, or NYDIG, as part of a broader effort to provide customers with secure access to Bitcoin (BTC) investment products.