Goldman Sachs and Barclays have made a new bet on the mainstream adoption of digital assets by investing in Elwood Technologies, a cryptocurrency trading platform founded by Alan Howard, a billionaire in the UK hedge fund.
The two banks have invested with venture capitalist Dawn Capital and the venture division of Galaxy Digital, a crypto finance group of German lender Commerzbank and US Billionaire Mike Novogratz. According to people familiar with the term, this round was Elwood’s first external funding and valued the company six years ago at around $ 500 million.
Elwood relies on traditional financial institutions, from hedge funds to banks and family offices. Despite the plunge in crypto asset prices, we are investing more in digital assets. According to CryptoCompare data, the market value of the top 500 digital assets is more than half down from last year’s highs. Financial Times.. Bitcoin on Tuesday fell below $ 30,000 for the first time since July.
Elwood’s funding round was agreed before the latest weekly down slide. Founded as a means of managing Howard’s personal crypto assets, the company provides market data and trading infrastructure to large investors in digital assets.
CEO James Stickland shrugged Drop and called funding “another verification of cryptographic lifespan.”
“We are investing in financial institutions that we don’t expect to make big profits in 15 minutes. They are investing in infrastructure,” he said. “I think it’s a message of security.”
Raising $ 70 million will solidify Elwood’s turnaround. It has recently been focused on asset management in 2019 and is planned to be offered. Cryptographic fund portfolio For institutional investors. Elwood is currently selling its technology to other clients to manage their own crypto investments, and Stickland, who joined the company in 2020 to lead the drive to becoming a software provider. I am saying.
Matthew McDermott, Global Head of Digital Assets at Goldman Sachs, said: He added that the investment represents an “ongoing commitment” to US banks’ digital assets.
According to Stickland, Elwood offers a technology platform similar to Bloomberg Terminal and BlackRock’s Aladdin portfolio management system, plugging into financial institutions’ existing trading software to help manage and trade crypto portfolios. The purpose is to do.
In February, the company announced a partnership with Bloomberg, connecting its software to the order management system of the US trading platform.
“Unless we have the infrastructure and are satisfied with the quality of the underlying architecture, we can’t really get the volume we need,” says Stickland.
Elwood will continue to be owned by Howard, who was a major investor before the transaction. The co-founder of the Brevan Howard Hedge Fund is one of the most prominent UK investors entering the crypto market.