Goldman Sachs investing in Bitcoin company

Goldman Sachs is partnering with a major Chinese investment firm to provide $50 million in funding to a Bitcoin start-up.

The investment, announced late Wednesday, will be the first by a major bank in a Bitcoin-focused company, according to The New York Times. Goldman is leading the investment with IDG Capital Partners.

The funds will go to Circle Internet Financial, a consumer payments company that uses Bitcoin to move money.

“As the financial services industry continues to become more digital and open, we see significant opportunities in companies and solutions that have the promise to transform global markets through technical innovation,” said Tom Jessop, managing director of Goldman Sachs’ Principal Strategic Investment Group.

“We think that Circle’s product vision and exceptional management team present a compelling opportunity in the digital payments space.” 

The investment is seen as a big boost for virtual currency, which has struggled to go mainstream due to a measure of volatility in its value and association with criminal activity.

“While Goldman will not be Circle’s bank, and will not hold any Bitcoins itself, its investment in Circle should help solidify Bitcoin’s reputation as a technology that serious financial firms can work with,” the Times reported.