According to sources, Copper, a crypto company connecting the worlds of crypto and institutional finance, is in talks with one of the largest banks in the UK, Barclays.
The report also cites Philip Hammond, a former Chancellor of the Exchequer of the United Kingdom, as an investor.
Various media outlets reported recently that a lender participated in a Copper financing round and contributed a few million dollars on July 24.
Both Copper and Barclays did not respond to media inquiries about the deal and declined to comment.
This comes during a difficult time when cryptocurrency prices are dropping dramatically, coin crashes are occurring, and bankruptcies are increasing. Additionally, due to the economy’s overall instability, big risk assets, in general, have declined.
According to PYMNTS, this has led to a decline in funding for private crypto firms. The consequences of many economic conditions that have severely impacted venture capital, public equities, and cryptocurrency have also been felt by startups.
The managing partner of CoinFund, David Pakman, warned that the future may be bleak with more layoffs and lower valuations because it is the lowest level in a year.
Earlier this month, Pakman stated that the companies should start holding enough cash to withstand hardship for up to two years. “What you’re seeing now is seed valuations are down about 20%, Series A valuations are down about 50%, and then Series B and beyond are down about 70%.”
According to GlobalBlock analysts, even though crypto is facing substantial challenges due to the microclimate and a lack of buyers, financial institutions are showing an increase in interest, and the long-term value continues to grow.
As a result of its purchase of Copper stock, Barclays is demonstrating its confidence in both the cryptocurrency sector and the company that manages digital assets investments.
The crypto firm which has established a prestigious name in the quickly evolving crypto industry is governed in Switzerland. This is after failing to register with the Financial Conduct Authority of the United Kingdom.
Following its establishment in Zug, Switzerland’s crypto haven, and its relationship with State Street, the company recently ran into trouble due to FCA regulations that mandated interim registration be applied by digital asset service providers in order to continue trading.
Recently, Copper also hired a group of Bank of America executives in April 2022 to assist with the development of prime brokerage service.
Michael Roberts, who formerly served as a managing director and the Europe Middle East and Africa (EMEA) head of the bank’s prime platform at Bank of America Merrill Lynch, is now in charge of the new team and brings with him nearly two decades of experience.
Founded in 2018, Copper is currently offering custody, trading, and settlement solutions across 450 crypto-assets on more than 45 exchanges. It provides a gateway to all institutional investors who want to enter the crypto assets industry.
The company’s main offering is ClearLoop, a framework that links all exchanges in the world into a single, safe trading loop with real-time settlement via numerous networks.
Barclays is not the only well-known business to express interest in Copper, as the cryptocurrency company has also been able to attract funding from international venture capital firms including LocalGlobe, MMC Ventures, and Dawn Capital.
This demonstrates that businesses are considering cryptocurrency for the future despite ongoing debates over the market’s stability.