Elwood Receives FCA Approval for Security Token Services
Elwood Technologies, backed by Goldman Sachs, has obtained authorization from the Financial Conduct Authority (FCA) in the UK to offer security token and derivatives trading services. This approval is a significant milestone for Elwood’s mission to provide a regulated and transparent digital asset platform in the UK, a major global financial jurisdiction.
The FCA authorization specifically focuses on Elwood’s execution management system for security tokens and derivatives. This platform allows clients to connect to cryptocurrency exchanges and over-the-counter trading venues.
In May 2022, Elwood successfully completed a Series A funding round of $70 million, led by Goldman Sachs and Dawn Capital. Other major players in the financial sector, including Barclays, BlockFi Ventures, Chimera Ventures, CommerzVentures, Digital Currency Group, Flow Traders, and Galaxy Digital Ventures, also participated in the funding round.
Elwood is primarily controlled by Alan Howard, former CEO of hedge fund Brevan Howard, who has been actively involved in the cryptocurrency sector since late 2020. Howard launched BH Digital in 2021, a division of his hedge fund focused on cryptocurrencies.
Binance Supports Ondo Finance Project Led by Former Goldman Sachs Employees
Binance, the world’s largest cryptocurrency exchange, has announced support for the altcoin project Ondo Finance (ONDO), which focuses on tokenizing real-world assets (RWA), particularly short-term bonds and US Treasury securities.
Ondo Finance currently operates on Ethereum (ETH), Solana (SOL), and Polygon (MATIC) blockchains with investments in TradFi markets such as iShares Short Treasury Bond ETF and BlackRock Short-Term Treasury Bond Exchange Traded Fund (ETF).
Ondo Finance is led by President and COO Justin Schmidt and Founder and CEO Nathan Allman, both with previous experience at Goldman Sachs. The project aims to bridge the gap between TradFi and decentralized finance (DeFi).
Binance has introduced perpetual contracts for ONDO with leverage up to 50x. However, a spot market tool for ONDO has not yet been introduced on the exchange.
Ondo Finance envisions the convergence of traditional finance and decentralized finance in the future, with public blockchain technology as the foundation. The project is committed to providing institutional-level products and services while prioritizing security, transparency, legal compliance, user experience, and regulatory requirements.
Hot Take: Elwood and Ondo Finance Make Strides in Security Token Market
With Elwood obtaining FCA approval for its security token and derivatives trading services and Binance supporting Ondo Finance’s efforts to bridge TradFi and DeFi, the security token market continues to expand. These developments highlight the growing interest from major financial institutions in digital assets.
Elwood’s authorization from the FCA positions it as a regulated player in the UK’s financial landscape, offering clients access to cryptocurrency exchanges and over-the-counter trading venues. The backing of Goldman Sachs and other prominent investors further solidifies Elwood’s position in the market.
Ondo Finance’s focus on tokenizing real-world assets and its leadership team’s background at Goldman Sachs demonstrate a commitment to merging traditional finance with decentralized finance. Binance’s support for Ondo Finance further boosts its visibility in the crypto space.
The convergence of TradFi and DeFi is an exciting prospect that could reshape the financial industry. As more projects like Elwood and Ondo Finance gain traction, we can expect increased innovation and opportunities in the security token market.
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