Goldman Sachs Partners With Barclays To Invest In UK-based Crypto Firm, Elwood
Two of the world’s largest banking institutions, Goldman Sachs and Barclays, have teamed up to invest in one of the U.K’s most promising crypto platforms, Elwood, as part of their expansion into digital financial products and services.
According to the global head of digital assets at Goldman Sachs, the increased demand for cryptocurrency from established institutions is the main driver for the firm to broaden its market capability to cater to the growing demand.
Accordingly, the banking giants have joined a $70 million Series A funding phase for the recognized institutional crypto trading firm, Elwood Technologies, founded by the celebrated British hedge fund manager, Alan Howard.
Amid Market Correction
The duo of Goldman Sachs and Barclays are not the only participants in the funding round as the popular German bank, Commerzbank, known for its crypto-friendly policy, is also part of the funding team alongside cryptocurrency investment manager Galaxy Digital and Dawn Capital, according to the Financial Times report.
The fundraising project has seen the value of the recipient company, Elwood Technologies, jump to $500 million.
Interestingly, the funding round came when the crypto market was bleeding, leading to the loss of huge asset portfolios by investors and traders. However, Elwood is confident that other traditional financial institutions like hedge fund managers and banks will still embrace digital asset products in the coming years.
It is worth noting that the funding round for Elwood was already concluded before the latest price dip in the crypto market, with roughly 15% wiped off the industry in terms of market capitalization since May 9, as reported by CoinMarketCap.
The CEO of Elwood Technologies, James Stickland, noted that the funding round had given more validation to the long-held view that crypto is here to stay, brushing off the price decline that has hovered over the market over the past couple of weeks.
According to Stickland, Elwood is attracting investments from traditional financial institutions that are in it for the long-term or short-term benefits because they are investing in the company’s financial infrastructure.
What services does Elwood Provide?
Elwood Technologies is a crypto management system provider that provides institutional investors with extensive market information and trading facilities, with an interface connecting crypto exchanges, custodians, and liquidity providers.
Mathew McDermott, Goldman Sachs’s head of global assets, commented on the new deal by adding that the company is committed to cryptocurrency investment and expansion due to institutional demand for crypto products and services.
Moreover, the latest funding signals Goldman Sachs’ further expansion into digital assets. It consolidates its position as the first investment bank to offer a Bitcoin-backed loan to borrowers on the crypto exchange platform, Coinbase, in the early days of the month.
The investment banking giant has long shown interest in venturing into the digital finance space for quite some time.
If anything, the partnership between traditional financial institutions and crypto investment and funding is the perfect way to adopt digital assets.
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