Banking giants Goldman Sachs and Barclays have invested in Alan Howard’s cryptocurrency trading platform.
Two of the world’s major investment banks, Goldman Sachs and Barclays, recently participated in a $70 million Series A funding round for Elwood Technologies, the crypto trading platform founded by British hedge fund billionaire Alan Howard.
Goldman Sachs and Barclays Invest in Elwood
According to a Sunday report by the Financial Times, this funding round marked the first time that Elwood Technologies has sourced outside financing and brought the company’s valuation to $500 million.
The fundraising event saw contributions from several other notable investors, including crypto-friendly German bank Commerzbank, venture capitalist Dawn Capital, and Mike Novogratz’s Galaxy Digital.
Elwood Technologies currently provides institutional investors with crypto portfolio management services, including digital asset market data and trading infrastructure with an interface that connects to multiple exchanges, liquidity providers, and custodians.
Commenting on the latest funding round, Matthew McDermott, the global head of digital assets at Goldman Sachs, noted that the bank’s investment in Elwood is a demonstration of its “continued commitment” to the crypto space.
“As institutional demand for cryptocurrency rises, we have been actively broadening our market presence and capabilities to cater to client demand,” he said.
A Bullish Sign for Mainstream Crypto Adoption
Despite the current bearish state of the cryptocurrency market, Elwood is optimistic that traditional financial institutions, including hedge funds and banks, will continue to maintain a strong interest in investing in the crypto space.
Per the report, Elwood’s investment round was already in motion before the latest black swan event, which shredded about 15% from the global crypto market cap.
Elwood’s CEO, James Stickland, echoed the company’s sentiments and pointed out that the success of the funding round amid crypto market turmoil was “another validation of the longevity of crypto.”
“Financial institutions that invest in us aren’t expecting to get massive returns within 15 minutes. They are investing in the infrastructure, I believe it is a message of reassurance,” he said.
Crypto analysts have attributed the latest news as a bullish sign toward the long-term mainstream adoption of the industry and other digital assets.