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British banking behemoth Barclays is to invest in cryptocurrency financial services provider Copper. According to Sky News, the bank will participate in a capital round involving other investors and will be finalized soon. As stated by the publication's sources, Barclays is anticipated to invest a "tiny sum in the millions of dollars." In recent months, Copper has sought to fund at least $500 million, seeking an evaluation in the billions of dollars, but has encountered regulatory challenges in the UK.
Barclays Raised $50 Million Funding
In a Series B funding round last year, the company raised $50 million and later received an extra $25 million from billionaire British macro investment icon Alan Howard. Philip Hammond, a former UK chancellor, is one of its advisors. Established in 2018, Copper provides institutional investors custody, prime broking, and settlement services. According to a May Financial Times article, Barclays has experience with cryptocurrency and has already invested in Elwood Technologies, a provider of institutional crypto services. The bank participated alongside Goldman Sachs and Mike Novogratz's company in a capital round that gave Galaxy Digital a $500 million valuation.
Crisis in Crypto Industry
Earlier this year, it was planning to raise at least $3 billion in financing. Still, it has subsequently pulled that back in light of the escalating crisis in the more significant crypto-assets industry. Several significant market players, including Three Arrows Capital and Celsius, have declared bankruptcy recently, eroding faith in the sector's once-rapid expansion. As a result of its dissatisfaction with the approach taken by UK financial regulators, Copper decided to build a hub in Switzerland.