The banking giants Goldman Sachs and Britain’s Barclays have joined a $70 million Series A funding round for institutional cryptocurrency trading platform Elwood Technologies.founded by billionaire British hedge fund manager Alan Howard.
The round was joined by crypto-friendly German bank Commerzbank, crypto investment manager Galaxy Digital, and Dawn Capital., as reported by the Financial Times on Sunday. The fundraising round valued the company at about $500 million, according to the report.
Despite the recent slump in cryptocurrency markets, Elwood said he is betting that traditional financial institutions, such as hedge funds and banks, remain interested in investing in cryptocurrencies.. The Elwood funding round had already been agreed upon and launched before the latest price crash, which has wiped out roughly 15% of the total cryptocurrency market capitalization since May 9, according to CoinMarketCap.
Elwood Technologies CEO James Stickland said the fundraising was “another validation of the longevity of cryptocurrencies.”dismissing the drop in prices in recent weeks:
“We are receiving investments from financial institutions that do not expect to make big profits in 15 minutes. They are investing in the infrastructure, I think it is a message of calm.”
Elwood Technologies offers a cryptocurrency wallet management system with cryptocurrency market insights and trading infrastructure for institutional investors which has an interface that connects with cryptocurrency exchanges, liquidity providers and custodians.
Goldman Sachs global head of digital assets Mathew McDermott commented that the investment showed the company has an “ongoing commitment” to cryptocurrencies.and added:
“As institutional demand for cryptocurrencies increases, we have been actively expanding our market presence and capabilities to serve customer demand.”
The Goldman Sachs funding marks the bank’s further expansion into crypto assets. The investment bank was the first to offer a bitcoin (BTC)-backed loan to crypto exchange Coinbase in early May.. He has long seen an interest in the space, even referring to digital assets and the Metaverse as “megatrends” in March.
Another case of the Wall Street giant reaching out to crypto companies was a meeting between Goldman CEO David Solomon and FTX CEO Sam Bankman-Fried.which included an offer from Solomon to help FTX with future funding rounds and regulatory compliance.
As for Elwood Technologies, it will remain majority owned by Alan Howard, who was the lead investor before the series A round.. Howard co-founded the hedge fund Brevan Howard, which launched its BH Digital cryptocurrency investment arm in September 2021.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.