Elwood, the digital currency infrastructure and managed services provider, has raised the sum of $70 million in a Series A funding round. The capital raise, co-led by Dawn Capital and American banking giant, Goldman Sachs, now values the startup at $500 million.
While Elwood has largely been funded by Alan Howard, the British billionaire investor who is the latest to join the crypto bandwagon, the new funding highlights the growing collaboration between stakeholders in the traditional finance and crypto ecosystem respectively.
Besides Dawn Capital and Goldman Sachs, the Financial Times reported that the venture capital arm of Germany’s Commerzbank and Galaxy Digital also participated in Series A.
“We’re getting investment from financial institutions that aren’t expecting to get massive returns in 15 minutes. They’re investing in the infrastructure,” he said. “I think it’s a reassurance message,” said James Stickland, the Chief Executive Officer who noted the funding proves the longevity of digital currencies.
Investing Despite Crypto Market’s Bearish Outlook
The digital currency ecosystem is at its downturn with the events that unfolded last week with the Terra ecosystem that eventually led to its collapse in its current form. Despite the gloominess of the ecosystem, Elwood investors believe in the technology the startup is brandishing and has notably influenced such massive capital injection the firm has recorded thus far.
The funding, according to the Financial Times will redirect the focus of the startup as it would now focus on scaling its technology so it can sell them to other financial institutions or clients who need digital assets management and crypto trading infrastructures.
With many banks looking for ways to gain exposure to digital currencies indirectly in order to meet client demands, investments in innovative tech come off as a very big way to satisfy this unique need.
“As institutional demand for cryptocurrency rises, we have been actively broadening our market presence and capabilities to cater for client demand,” said Mathew McDermott, global head of digital assets at Goldman Sachs. He added that the investment showed the US bank’s “continued commitment” to digital assets.