Elwood Technologies, an institutional crypto asset trading platform founded by UK billionaire hedge fund manager Alan Howard, today announced a new funding round co-led by Goldman Sachs and Dawn Capital.
Series A was joined by German bank Commerzbank, Galaxy Digital Ventures, BlockFi Ventures, Digital Currency Group, Flow Traders and British multinational bank Barclays. According to a Financial Times report, the funding round brought Elwood’s valuation to $500 million.
Elwood was founded in 2018 to provide traditional financial institutions with a way to access crypto-native digital assets by bridging the gap in the cryptocurrency ecosystem. It does this by providing secure exposure to crypto for traditional finance with a wide range of reports and analysis.
The company’s platform is similar to Bloomberg’s terminal or BlackRock’s Aladdin wallet system. It can connect to existing trading software running at a traditional financial institution and allow them to manage their existing crypto portfolio in a way they are already familiar with.
In February, Elwood partnered with Bloomberg, which connected its software to its US-based order management portfolio management system, allowing investors to order and trade crypto assets.
“We have entered a new chapter in Elwood’s journey and continue to expand our capabilities, enabling our institutional clients to provide their users with enhanced access to digital assets,” said James Stickland, Managing Director of Elwood Technologies. .
This new funding for Elwood comes as crypto markets have suffered extreme volatility and the overall market has lost around 15% of its value since May 9, according to CoinMarketCap. Major cryptocurrency Bitcoin also slipped below $30,000, its lowest value since July 2021. However, funding was already agreed before the downturn.
Stickland called the new funds “a further validation of crypto’s longevity” despite the market downturn. He noted that financial institutions are not looking for instant gratification.
“They invest in infrastructure,” he says. “I think it’s a message of comfort.”
Mathew McDermott, global head of digital assets at Goldman Sachs, echoed Stickland’s sentiment regarding the demand for crypto assets in traditional finance.
“As institutional demand for cryptocurrency increases, we are actively expanding our market presence and capabilities to meet customer demand,” McDermott said. “Our investment in Elwood demonstrates our continued commitment to digital assets and we look forward to partnering to expand our capabilities.”
According to Stickland, Elwood’s infrastructure has been perfected over three years and is already used by several fintech companies, asset managers and other clients. With this new funding, the company will expand its mass market involvement, add new products and fuel its international growth.