Goldman Sachs and Barclays invest in British crypto-trading platform Elwood

Banking giants Goldman Sachs and Britain’s Barclays have joined a $70 million Series A funding round for institutional crypto trading platform Elwood Technologies, founded by British billionaire hedge fund manager Alan Howard.

German bank Commerzbank, cryptocurrency investment manager Galaxy Digital and Dawn Capital have joined the round, as reported by the Financial Times on May 15. The funding round valued the company at around $500 million according to the report.

Despite the recent fall in cryptocurrency markets, Elwood said he bets that traditional financial institutions such as hedge funds and banks will still be interested in investing in cryptocurrencies. Elwood’s funding round was already agreed and underway before the latest price drop which saw around 15% wipe out the total cryptocurrency market capitalization since May 9 according to CoinMarketCap.

Elwood Technologies CEO James Stickland said the fundraiser was “another validation of crypto longevity” sweeping away the price drop of the past few weeks:

“We get investments from financial institutions that don’t expect massive returns in 15 minutes. They are investing in infrastructure, I think that’s a reassuring message.

Elwood Technologies provides a crypto portfolio management system with crypto market information and trading infrastructure for institutional investors that includes an interface that connects to crypto exchanges, liquidity providers, and custodians.

Commenting on the deal, Goldman Sachs Global Head of Digital Assets, Mathew McDermott, said the investment showed the company has an “ongoing commitment” to cryptocurrencies, adding:

“As institutional demand for cryptocurrency increases, we have actively expanded our market presence and capabilities to meet customer demand. »

The funding from Goldman Sachs marks the bank’s continued expansion into cryptocurrency assets. The investment bank was the first to offer a Bitcoin (BTC) backed loan to the Coinbase crypto exchange in early May. He’s had a long-standing interest in the space, even calling digital assets and the metaverse a “megatrend” in March.

Another case of the Wall Street giant’s rapprochement with cryptocurrency firms saw a meeting between Goldman CEO David Solomon and FTX boss Sam Bankman-Fried, which included an offer from Solomon to help FTX with future funding cycles and regulatory compliance.

As for Elwood Technologies, it will remain majority owned by Alan Howard who was the lead investor prior to the Series A round. Howard co-founded hedge fund Brevan Howard which launched its crypto investment division “BH Digital” in September 2021.

Leave a Comment