Goldman Sachs and Barclays invest in UK crypto trading platform Elwood

Banking giants Goldman Sachs and U.K.-based Barclays have joined a $70 million Series A round from Elwood Technologies, the institutional crypto trading platform founded by U.K. billionaire hedge fund manager Alan Howard.

Joining this round is Crypto-friendly German bank Commerzbankcrypto investment manager Galaxy Digital and Dawn Capital are report The Financial Times reported on May 15. The round reportedly valued the company at around $500 million.

although The recent drop in the crypto market, Elwood said it believes traditional financial institutions such as hedge funds and banks will still be interested in investing in cryptocurrencies. Elwood’s financing round was approved and underway before the recent price drop of about 15% wiped out the total market capitalization of cryptocurrencies Since May 9, according to Coin market value.

James Stickland, CEO of Elwood Technologies, said the fundraising is “another validation of the longevity of cryptocurrencies,” offsetting the price drop over the past few weeks:

“We’re getting investment from financial institutions that don’t expect huge returns in 15 minutes. They’re investing in infrastructure, and I think that’s a reassuring message.”

Elwood Technologies provides institutional investors a crypto portfolio management system with crypto market information and trading infrastructure with interfaces to crypto exchanges, liquidity providers and custodians.

Commenting on the deal, Matthew McDermott, global head of digital assets at Goldman Sachs, said the investment demonstrates the firm’s “continued commitment” to cryptocurrencies, adding:

“As institutional demand for cryptocurrencies has risen, we have been aggressively expanding our market presence and capabilities to meet the needs of our clients.”

The funding from Goldman Sachs marks the bank’s further expansion into crypto assets.investment bank was the first Offers bitcoin-backed loans (Bitcoin) to cryptocurrency exchange Coinbase in early May.People have been interested in this space for a long time, even Calling digital assets and Metaverse “megatrends” March.

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Another case of Wall Street giants courting crypto firms was a meeting between Goldman Sachs CEO David Solomon and FTX boss Sam Bankman-Fried, which included Offer from Solomon to help FTX Future funding rounds and regulatory compliance.

As for Elwood Technologies, it will remain majority-owned by lead investor Alan Howard prior to the Series A round. Howard co-founded hedge fund Brevan Howard Launches its crypto investment arm “BH Numbers” for September 2021.

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