Banking giants Goldman Sachs and the United Kingdom’s Barclays have joined a $70 million Series A funding spherical for the institutional crypto buying and selling platform Elwood Technologies, based by billionaire British hedge fund supervisor Alan Howard.
Joining the spherical was crypto-friendly German financial institution Commerzbank, crypto funding supervisor Galaxy Digital and Dawn Capital, as reported by the Financial Times on Sunday. The fundraising spherical valued the corporate at round $500 million, in response to the report.
Despite the current fall in crypto markets, Elwood stated it’s betting that conventional monetary establishments reminiscent of hedge funds and banks will nonetheless be curious about investing in cryptocurrencies. Elwood’s funding spherical was already agreed to and in movement earlier than the most recent drop in costs, which has seen roughly 15% wiped off the whole crypto market cap since May 9, in accordance to CoinMarketCap.
Elwood Technologies CEO James Stickland stated the fundraising was “one other validation of the longevity of crypto” dismissing the falling costs from the previous couple of weeks:
“We’re getting funding from monetary establishments that aren’t anticipating to get huge returns in quarter-hour. They’re investing within the infrastructure, I believe it’s a reassurance message.”
Elwood Technologies offers a crypto portfolio administration system with crypto market info and buying and selling infrastructure for institutional buyers that options an interface that connects to crypto exchanges, liquidity suppliers and custodians.
Commenting on the deal was Goldman Sachs’ international head of digital property Mathew McDermott, saying that the funding confirmed that the agency has “continued dedication” to cryptocurrencies, including:
“As institutional demand for cryptocurrency rises, now we have been actively broadening our market presence and capabilities to cater for consumer demand.”
The funding from Goldman Sachs marks the financial institution’s additional enlargement into crypto property. The funding financial institution was the primary to supply a mortgage backed by Bitcoin (BTC) to crypto alternate Coinbase in early May. It has lengthy seen an curiosity within the area, even referring to digital property and the Metaverse as “megatrends” in March.
Another case of the Wall Street large cozying to crypto companies noticed a gathering between Goldman CEO David Solomon and FTX CEO Sam Bankman-Fried, which included a suggestion from Solomon to assist FTX with future funding rounds and regulatory compliance.
As for Elwood Technologies, it’ll stay majority-owned by Alan Howard, who was the primary investor earlier than the Series A spherical. Howard co-founded the hedge fund Brevan Howard which launched its crypto funding division BH Digital in September 2021.