BitGo, whose investors are Galaxy Digital Ventures, Goldman Sachs and Valor Equity Partners, reported on Wednesday that digital assets in custody exceeded $ 16 billion for the first time, providing further validation that the institutional demand has arrived.

In an official press release, BitGo said institutional investors want exposure to digital assets “for safekeeping, trading and lending.”

CEO Mike Belshe noticed:

“We are seeing unprecedented interest from institutional investors as a result of the economic impact of the pandemic, as well as Bitcoin’s extraordinary performance.”

Founded in 2013 as a digital wallet service, BitGo has expanded to provide liquidity, custody and security solutions to institutional investors. The company claims more than 20% of all global Bitcoin (BTC) transactions and supports more than 300 digital assets.

BitGo made headlines a few months ago anonymous sources told Bloomberg that the company had become a target for acquisition of PayPal Inc. Representatives of both companies declined to comment at the time.

Demand for institutional-grade crypto has soared this year as Bitcoin’s digital gold story continues to attract new investors. Companies love Grayscale, PayPal, MicroStrategy, Ruffer Investment Group, and MassMutual have been central to the urge to adopt.

As Cointelegraph reported earlier this week, Anthony Scaramucci’s multi-billion dollar hedge fund, SkyBridge Capital, has also filed formal paperwork with the Securities and Exchange Commission to launch a new Bitcoin fund.

BitGo did not immediately respond to the request for comment.