Barclays Takes Up Stake in Cryptocurrency Firm Copper

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• Copper Reduces Its Valuation Expectations

According to reports from Sky News cryptocurrency firm Copper, which is advised by former chancellor Lord Hammond, is raising funds from new and existing investors, including the multi-national bank Barclays. The London-based bank reportedly plans to invest a few million in Copper’s Series C funding round.

Global financial services provider Barclays has announced that it will purchase a multi-million-dollar stake in cryptocurrency firm Copper. Barclays will invest a few million dollars in the Switzerland-based company as part of a new funding round. Founded in 2018 by Dmitry Tokarev, Copper provides custody, prime brokerage, and settlement services to institutional investors in cryptocurrencies and services to over 400 clients, including traders, crypto funds, and family offices. Copper’s claim to fame is its use of the proprietary ClearLoop technology that it uses to link 45 cryptocurrency exchanges with immediate offline settlement over its integrated networks.

This investment marks the second time this year Barclays has invested in a crypto company. Earlier this year in May, Barclays, along with Goldman Sachs invested in Elwood Technologies, a crypto trading platform, and technology provider founded by British hedge fund billionaire Alan Howard. The move from Barclays to invest in both these companies suggests the bank’s growing interest in cryptocurrency infrastructure.

Copper Reduces Its Valuation Expectations

During the glory of the crypto bull run in 2021, Copper had initially looked to raise $5000 million to get them at a valuation of $3 billion in a Series C funding round but was ultimately left without the possibility of this after a tussle with U.K. regulators. The firm was in talks with Tiger Global, SoftBank Group, and Accel to take part in the financing which was due to start in November 2021. Copper has had to downscale its ambitions to $2 billion after securing regulatory approval in Switzerland via a Swiss entity in Zug in May amid the growing crisis in the wider crypto-assets sector.

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