Goldman Sachs’s appropriations of crypto assets said that institutional interest for cryptocurrencies is increasing, and also that the bank has already been “aggressively widening” its creating promotional campaigns to fill those positions.
The corporate bitcoin exchange network Elwood Technology, created by wealthy British billionaire Alan Howard, has raised $70 million in a Series A fundraising deal led by Goldman Sachs and Barclays.
The Economic Times says on May 15 that blockchain German bank Commerzbank, cryptocurrency asset management Galaxy Digital, and Dawn Capital had joined every round. As per the article, the industry was incorporated at roughly $500 million during the investment phase.
Following the rapid decline in the price of bitcoin, Elwood believes capital markets such as investment firms and governments will continue to be ready to invest in cryptocurrencies. Elwood’s investment round was already put into motion well before the recent decrease in pricing, which has seen the whole cryptocurrency valuation fall by about 15% as Of May 9, as per CoinMarketCap.
Elwood Systems CEO James Stickland described the financing as “further evidence of crypto’s endurance,” dismissing recent price drops:
“We’re receiving capital from banks who aren’t anticipating great returns in 15 minutes.” They’re spending in facilities, which I believe is a statement of security.”
Elwood Technologies offers investment firms a cryptocurrency asset management solution that includes cryptocurrency market data and transaction infrastructures, as well as an application that interfaces to digital currencies, amounts of financial, and regulators.
Mathew McDermott, Goldman Sachs’ general manager of crypto assets, said the purchase demonstrated the company’s “strong dedication” to bitcoins.
“As the corporate desire for cryptocurrencies grows, we’ve been working hard to expand our sales network and skills to meet customer needs.”
Goldman Sachs’ investment signifies the bank’s continued foray into digital content. In early May, the financial firm was the first to provide cryptocurrency Coinbase with a loan secured by Bitcoin (BTC). It really has always been interested in the field, alluding to crypto assets as well.
A discussion with Goldman CEO David Solomon and FTX CEO Sam Bankman-Fried, which also included Solomon’s pledge to assist FTX with upcoming financings and regulatory requirements, was the other example of the Wall Street titan capitulating to cryptocurrency businesses.
Alan Howard, who was the primary shareholder well before Round A’s investment, will retain a controlling interest in Elwood Systems. In September 2021, Howard co-founded the brokerage firm Brevan Howard, which started its bitcoin investing subsidiary “BH Digital.”
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