Leading investment banks Goldman Sachs and Barclays are among the few to lead a $70 million funding round for a UK-based crypto trading platform Elwood Technologies, which valued the firm at around $500 million, according to a report by Financial Times.
The funding exercise was supported by crypto-friendly German bank Commerzbank, digital asset investment manager Galaxy Digital and Dawn Capital. Elwood was founded by billionaire British hedge fund manager Alan Howard.
The latest backing is another example of the growing adoption of digital assets despite the prevailing market condition.
Speaking on the financial round, Elwood Technologies CEO James Stickland said the fundraising was “another validation of the longevity of crypto” brushing off the falling prices from the last few weeks:
We’re getting investments from financial institutions that aren’t expecting to get massive returns in 15 minutes. They’re investing in the infrastructure, I think it’s a reassurance message.
Elwood Technologies provides a crypto portfolio management system with crypto market information and trading infrastructure for institutional investors that features an interface that connects to crypto exchanges, liquidity providers, and custodians.
Commenting on the deal, Goldman Sachs’ global head of digital assets Mathew McDermott, stated that the investment reflects its “continued commitment” to cryptocurrencies. He then added
“As institutional demand for cryptocurrency rises, we have been actively broadening our market presence and capabilities to cater to client demand.”
Goldman Sachs’s Massive Crypto Push
Last month, Goldman Sachs [GS] offered its first bitcoin-backed loan which signifies Wall Street’s deepening crypto ties. The banking giant claimed its’s secured lending facility enabled a borrower to use bitcoin as collateral for a cash loan.
Goldman, which has a dedicated digital assets team, traded its first over-the-counter bitcoin options to Galaxy Digital in March.
Looks like the investment firm is following in the footsteps of other traditional finance giants moving further into crypto. A few months ago, Cowen launched a digital assets unit and BlackRock [BLK] participated in the $400 million funding round for USDC stablecoin creator Circle.
With regards to Elwood, the firm will continue to have Howard as the majority stakeholder, who had been one of the UK’s most prominent investors to take the plunge into crypto markets.
