Goldman Sachs-backed Crypto Platform Elwood Technologies Secures Regulatory Approval
The Financial Conduct Authority (FCA) has granted regulatory approval to Elwood Technologies, a crypto platform backed by Goldman Sachs. The approval specifically covers Elwood’s execution system for security tokens and derivatives.
Elwood’s Background and Funding
Elwood Technologies was founded by British billionaire Alan Howard and raised $70 million in a Series A funding round in May 2022. The funding round, co-led by Goldman Sachs and Dawn Capital, increased Elwood’s valuation to $500 million. Other major traditional finance players such as Barclays, Citi, and Two Sigma are also backing the firm.
Elwood’s Software-as-a-Service (SaaS) Platform
Elwood offers a full SaaS platform that connects with crypto exchanges worldwide, allowing institutional investors to trade digital assets. The platform was initially created to manage Howard’s own crypto wealth.
Expectations for Increased Investment in Crypto
With the FCA’s authorization, Elwood expects traditional finance players to increase their investments in digital assets. This approval positions Elwood as one of the first authorized digital asset service providers in the UK.
Recognition of Regulatory Compliance
Mathew McDermott, head of digital assets at Goldman Sachs, expressed his excitement about Elwood’s progress in building regulatory-compliant digital asset infrastructure. He emphasized the importance of aligning digital asset companies with the regulatory expectations of the traditional finance world.
FCA’s Authorization Process
The FCA has a multi-step process for authorizing companies operating in the crypto space. Companies must ensure that their activities comply with Money Laundering Regulations and the FCA’s rules. Once approved, the company will be listed in the FCA’s register and receive a unique identification number.
Hot Take: British Billionaire Alan Howard’s Crypto Firm Receives UK Watchdog Approval
Elwood Technologies, backed by Goldman Sachs, has obtained regulatory approval from the FCA for its execution system for security tokens and derivatives. This approval positions Elwood as one of the first authorized digital asset service providers in the UK. With support from major traditional finance players, Elwood expects increased investment in digital assets. The authorization demonstrates Elwood’s commitment to building regulatory-compliant infrastructure for digital assets. The FCA’s authorization process ensures that companies operating in the crypto space comply with regulations and are listed in the FCA’s register. This milestone is a significant achievement for Elwood and the broader crypto industry.
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