NYDIG said it raised $1 billion in a funding round led by venture firm WestCap with participation from existing investor Bessemer Venture Partners, valuing the bitcoin company at more than $7 billion.

The company, a subsidiary of Stone Ridge, operates a full-stack bitcoin platform that delivers cryptocurrency across industries, including financial technology, insurance and banking firms.

A surge in the value of digital currencies and increased backing from major companies have helped companies in the sector to command sky-high valuations in recent months, even as regulatory scrutiny intensifies.

The company's existing investors who participated in the latest round included Affirm Holdings Inc (AFRM.O), FIS, Fiserv, MassMutual, Morgan Stanley (MS.N) and New York Life.

It also boasts of partnerships with technology companies Alkami, Fiserv Inc (FISV.O), Jack Henry & Associates (JKHY.O), and Q2 Software Inc.

NYDIG intends to use the funds raised in the round to develop its bitcoin platform further, develop existing payment capabilities and asset tokenization.