NYDIG Closes $1B Funding Round, Raising Valuation Above $7B

WestCap led the growth equity round with participation from prior investors including Morgan Stanley

article-image

Blockworks exclusive Art by Axel Rangel

share

key takeaways

  • NYDIG will use the capital to develop its Bitcoin-focused platform by integrating Bitcoin protocol upgrades like Lightning payments, asset tokenization and smart contracts
  • NYDIG’s CMO previously told Blockworks the company will continue to integrate into the market in a “major way” by next year

NYDIG completed a $1 billion growth equity funding round led by WestCap, according to a company announcement Tuesday. 

The equity raise increased the company’s valuation to “more than” $7 billion, the company revealed. Prior investors, including Morgan Stanley, Affirm, New York Life, Mass Mutual, Bessemer Venture Partners, FinTech Collective, FIS and Fiserv also contributed to the round. 

“Bitcoin as an asset class has become more of an institutional topic, certainly from macro investors,” Morgan Stanley’s Head of Digital Asset Markets Andrew Peel told Blockworks in September. “The growth [in DeFi] can’t be ignored,” Peel said. 

The capital will be used to develop its Bitcoin-focused platform by integrating Bitcoin protocol upgrades like Lightning payments, asset tokenization and smart contracts.

“…this new equity capital will further accelerate progress towards making this exciting network accessible – and useful – to all,” Robert Gutmann, co-founder and CEO of NYDIG, said in a statement. 

NYDIG began in 2016 and spun off into a separate entity in 2017 with a mission to “make Bitcoin accessible to all” by providing technology and financial services solutions to banks, FinTech companies, investment managers, and institutions, among others. It is also a subsidiary of holding company Stone Ridge, a $12 billion alternative asset manager. 

The firm is known for partnering with a range of institutions, from traditional financial companies and banks to national sports teams

NYDIG’s Chief Marketing Officer Kelly Brewster declined to comment further on the capital raise when requested by Blockworks on Tuesday. 

But last month, Brewster said to Blockworks, “Over the course of the next year, we plan to bring bitcoin to hundreds, if not thousands, of banks around the country and the first banks are coming online right now.” The current demand from companies looking to integrate Bitcoin is unlike anything Brewster has ever seen before in this space, he mentioned at the time. 

Although there are banks that have already partnered with NYDIG, the company will continue to integrate into the market in a “major way” by next year, Brewster said.


Get the day’s top crypto news and insights delivered to your inbox every evening. Subscribe to Blockworks’ free newsletter now.


Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates (3).png

Research

Pear Protocol has proven its market fit through its pair-trading infrastructure, sustaining consistent trading activity despite recent headwinds. Its strategic pivot toward Hyperliquid integration represents a major growth catalyst amid industry consolidation. While short-term token unlocks present challenges, current valuations and liquidity conditions may offer compelling opportunities for investors.

article-image

For just $54, you, too, could send a memecoin 500% higher

article-image

Memecoins, tech, and inflation have dominated the first half of the year

article-image

As the Trump administration continues to test Fed independence, markets are beginning to react

article-image

An Aave interest rate shock prompted over 475,000 validators to exit and pushed stETH into a prolonged depeg

article-image

While Roman Storm’s team is set to present its case, it’s not yet clear if the Tornado Cash founder will testify

article-image

A wireless network inspired by lost drones is now helping telco carriers reach your phone indoors