British bank Barclays is expected to take a stake in the fast-growing UK cryptoasset company Copper despite the collapse of several cryptocurrency companies globally.
First reported by Sky News, Barclays is said to be participating in a new funding round for the startup, which previously said it was seeking to reach a valuation of up to $3bn.
While the fundraise has not been finalised, sources have reportedly informed Sky News of Barclays’ involvement as a new investor for Copper.
Risk-averse retail banks have typically stayed away from crypto ventures due to the sector’s volatility and lack of regulation.
As such, Barclays’ reported investment indicates that institutions are continuing to tentatively embrace crypto and digital assets amid the market downturn.
Founded in 2018, Copper attempts to bridge the gap between institutional investors and digital assets. The company provides crypto trading and prime brokerage solutions to investors looking to put money into the sector.
The company counts former chancellor Lord Hammond among its advisors.
Copper’s previous valuation goals came before the ongoing crisis in the cryptocurrency sector, which has seen companies filing for bankruptcy, or closing operations completely.
In the UK, a major cryptoasset trading platform, Blockchain.com announced it would be cutting 25% of its workforce, which amounts to around 150 jobs lost.
The company also announced it would be closing one of its international offices and pausing further international expansion plans.
UKTN has reached out to Copper and Barclays for further comment.