Billionaire Alan Howard founded a cryptocurrency trading platform that attracted funding from top Wall Street investment bankers. Besides Sachs, Barclays, Dawn Capital, Commerzbank and Galaxy have invested in Elwood Technologies.

The cryptocurrency trading platform is a collaboration between traditional financial institutions and crypto-native funds. The financing led by Goldman Sachs put a value of more than $500 million on the 6-year-old company. One of the investors, Galaxy Digital Holding Ltd, is a crypto merchant bank run by billionaire Michael Novogratz.

Hedge fund Alan Howard also received participation from Chimera Ventures, Digital Currency Group, Galaxy Digital Ventures and Flow Traders.

Elwood provides low latency connectivity to major crypto exchanges around the world and low latency connectivity. It also provides significant liquidity through a single API. Other services include comprehensive analytics and reporting, as well as dedicated customer support.

Investment in Elwood, part of Goldman Sachs, continues its commitment to digital assets

Mathew McDermott, who leads the digital assets wing of Goldman Sachs, said their investment in Elwood reinforces their continued commitment to digital assets and he said they look forward to a deeper partnership to expand their capabilities.

Earlier in January, Goldman Sachs predicted that Bitcoin could reach a valuation of $100,000, although that seems a remote possibility at the moment as the market has been confused this quarter. Despite the deep setbacks, the participation of large traditional bankers like Goldman Sachs provides assurance that institutional demand for digital assets will continue to rise in the future.

Elwood released a statement that despite the recent decline in the cryptocurrency market, traditional financial institutions, including banks and hedge funds, have shown strong interest in cryptocurrencies.

The funding round at Elwood was agreed to by Goldman Sachs and other funds ahead of the current crypto market decline, which saw around 15% of the total market capitalization wiped out.

Goldman Sachs’ financing of Elwood marks the bank’s deeper expansion into cryptocurrencies and other assets. It was the first bank to offer Bitcoin-backed loans to Coinbase, the crypto exchange, in May. He has a long-standing interest in space and has even called the metaverse and digital sets a “mega-trend”.