Billionaire Michael Novogratz's Galaxy Digital investment background is in talks to buy custodian service BitGo. The deal is rumored to be closed in a couple of week.

The custodian service BitGo can be bought by investment fund Galaxy Digital, launched by billionaire Michael Novogratz. This is reported by CoinDesk, citing four anonymous sources familiar with negotiations. According to them, the deal is close to be completed soon. Both companies declined to comment.

Investment Fund Galaxy Digital is focused on providing financial services related to cryptocurrency.

In 2020, BitGo conducted similar negotiations with the payment company PayPal. The deal was never completed, but according to sources of Coindesk, PayPal was offering $750 million for the custodian service. PayPal later acquired another cryptocurrency storage service, Curv.

“Galaxy does not do custody so it makes sense to bring that in-house,” one of the sources familiar with the discussions told CoinDesk. BitGo also operates a $8.5 billion DeFi app, WBTC, which issues so-called tokenized bitcoins in exchange for the deposited bitcoins. WBTC are tokens compatible with the Ethereum blockchain.