Banking giants Goldman Sachs and the United Kingdom’s Barclays have signed up with a $70 million Series A financing round for the institutional crypto trading platform Elwood Technologies, established by billionaire British hedge fund supervisor Alan Howard.
Joining the round was crypto-friendly German bank Commerzbank, crypto-financial investment supervisor Galaxy Digital and Dawn Capital, as reported by the Financial Times on Sunday. The fundraising round valued the business at around $500 million, according to the report.
Despite the current fall in crypto markets, Elwood stated it’s wagering that conventional banks such as hedge funds and banks will still have an interest in purchasing cryptocurrencies. Elwood’s financing round was currently consented to and in movement before the most recent drop in costs, which has seen approximately 15% rubbed out the overall crypto market cap because May 9, according to CoinMarketCap.
Elwood Technologies CEO James Stickland stated the fundraising was “another recognition of the durability of crypto” brushing off the falling rates from the last couple of weeks:
” We’re getting financial investment from banks that aren’t anticipating to get enormous returns in 15 minutes. They’re purchasing the facilities, I believe it’s a peace of mind message.”
Elwood Technologies supplies a crypto portfolio management system with crypto market details and trading facilities for institutional financiers that includes a user interface that links to crypto exchanges, liquidity companies, and custodians.
Commenting on the offer was Goldman Sachs’ international head of digital possessions Mathew McDermott, stating that the financial investment revealed that the company has actually “continued dedication” to cryptocurrencies, including:
” As the institutional need for cryptocurrency increases, we have been actively expanding our market existence and abilities to cater to customer need.”
The financing from Goldman Sachs marks the bank’s growth into crypto possessions. The financial investment bank was the very first to provide a loan backed by Bitcoin (BTC) to crypto exchange Coinbase in early May. It has long seen an interest in the area, even describing digital possessions and the Metaverse as “megatrends” in March.
Another case of the Wall Street huge cozying to crypto companies saw a conference between Goldman CEO David Solomon and FTX CEO Sam Bankman-Fried, which included a deal from Solomon to assist FTX with future financing rounds and regulative compliance.
As for Elwood Technologies, it will stay majority-owned by Alan Howard, who was the primary financier before the Series A round. Howard co-founded the hedge fund Brevan Howard which released its crypto-financial investment department BH Digital in September 2021.