technology

Barclays buys stakes in crypto firm Copper in its latest funding round

Barclays buys stakes in crypto firm Copper in its latest funding round

Barclays, the leading British multinational bank, has reportedly acquired stakes in Copper, one of the most renowned companies in the rapidly developing cryptocurrency sector, even as the industry continues to be shaken by a wave of bankruptcies.

According to sources, a number of new investors have joined the investment round for Copper, which lists former chancellor, Lord Hammond, as one of its advisers.

As per city officials, Barclays planned to participate in the round with an investment of only a few million dollars. The overall fundraising initiative is slated to be finalized within the coming days.

This concludes a delay of over nine months in Copper's $500 million Series C funding round, through which the company anticipated to raise its valuation to $3 billion. However, contrary to the company’s anticipation, the amount has gone down to $2 billion weakened by the falling cryptocurrency market and decreasing investor interest.

The crypto firm offers settlement, prime broking, and custody services to institutional investors putting money into cryptocurrency assets.

Dmitry Tokarev founded Copper in 2018, attracting investment from notable players in the international venture capital industry like LocalGlobe, MMC Ventures, and Dawn Capital. In June 2021, the company reached a $50 million Series B investment round with an unspecified valuation.

Several significant market players, including Celsius and Three Arrows Capital, have recently declared bankruptcy, causing a gradual weakening of confidence in the industry’s earlier growth projections.

Frustrated with the approach taken by British financial regulators, Copper recently decided to set up a hub in Switzerland, followed by a partnership deal with major global traditional custodian State Street.

Back in 2015, Barclays became the first British bank to endorse cryptocurrency, specifically bitcoin, by persuading charities to accept the emerging asset class as a type of donation. The bank has had a troubled history with the sector, including refusing to work with dominant exchange operators Coinbase and Binance.

Source credit: https://news.sky.com/story/barclays-snaps-up-stake-in-2bn-cryptocurrency-firm-copper-12658295

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Meghna Singh

An English Literature graduate, Meghna Singh ventured into the profession of content development to incorporate her knack for writing articles across verticals including technology, healthcare, business, and alike for News Origins and RunningAfrica. She has also completed her MBA in Tourism and worked as a content creator in the field of product development.