Barclays is snapping up a stake in the crypto firm advised by former chancellor Lord Hammond in a fresh funding round, according to reports today.
Copper, which describes itself as the “institutional gateway to digital asset investing”, is set to get the backing of a group of new investors including Barclays, even as the crypto industry is battered by plunging value of cryptocurrencies and a wave of bankruptcies, Sky News first reported.
City sources told Sky that Barclays was expected to invest a sum in the millions of dollars as part of the round, with the fundraise expected to be finalised in the coming days.
The crypto firm was reported to be angling for a valuation of over $3bn in its latest capital raise but has since scaled back the plans amidst the crisis that has wiped more than $2tn of the value of the sector.
Top crypto firms including Coinbase have been forced to slash headcount and scale back growth plans amid the downturn which has sparked a wave of bankruptcies, including the recent failure of firms including Three Arrows Capital and Celsius.
Copper was held up on the Financial Conduct Authority’s temporary register to provide crypto services in the UK and has reportedly grown frustrated with the approach of UK financial regulators, prompting it to establish a hub in Switzerland instead.
Barclays and Copper were contacted for comment.