Barclays to buy stakes in $2bn crypto firm Copper

Investor trust in the crypto market has seen slight improvement as there is a positive trend seen. These changes have resulted in the plans for the purchase of stakes from Barclays, a British bank. Sky News has disclosed the details of the plans for its investment in crypto. Last week a new report from top US financial analysts suggested that the winter for crypto might be coming to an end. The result is in the form of increased investments from corporate firms to reap the benefits.

Britain has plans to ensure a crypto-friendly environment for crypto investors and companies through friendly regulations. As these plans are underway, investors have flocked to utilize this situation. The investment from Barclays is part of this run to utilize the growing market opportunities.

Here is a brief overview of Barclays’ plans for investment in Copper and how it will benefit the latter.

The decline in the market and Barclays’ decision

The global crypto market saw a decline in value since March 2022 as the geopolitical situation deteriorated. The changes in the market resulted in the loss of huge amounts for various companies. These resulted in the defaulter of big names like 3 Arrows Capital, Voyager, Celsius, etc. But as the market has begun to recover, investors want to utilize it for gains.

Barclays has also decided to play its part and grab this opportunity. It has considered the pros and cons of investment in crypto and is set to finalize the deal in a few days. According to the news disclosed by Sky News, it intends to join funding round with other investors for crypto firm Copper.

In comparison to other companies, Barclays is expected to stake a modest sum. The investment is expected to be some millions of dollars. Copper has plans to raise $500 million for its needs. It had plans for valuation in billions of dollars but couldn’t do so because of regulatory issues. Its funding rounds have continued for the past few months as it has run Series A and Series B funding rounds.

Impacts of banks’ investments in crypto

Banks have remained reluctant regarding investment in crypto. The main reason for it is the volatility of the market that has affected investors for the last few months. There was an improvement in this situation in the US as J. P. Morgan and others took initiative in this regard. Barclays is a new addition to the UK market which will add investor trust. Copper, a crypto firm, was formed in 2018 and it offers services like institutional investor custody, settlement, and prime broking services.

Copper has some renowned names as investors which include former UK chancellor, Phillip Hammond. Though the funding rounds have continued in a challenging year, Copper seems to offer a promising ROI. The start of 2022 was relatively better for crypto ventures as they had $9.85 billion in the first quarter.

Since then deterioration has taken the market, leading to a severe meltdown.  The shift has come in the second quarter as the funding increased, leading to its rise to $6.76 billion by June. It is yet to be seen how much Copper will be able to raise in the latest round. The impact of Barclays’ investment in this firm can’t be downplayed because it is going to have widespread repercussions.

Conclusion

Crypto firm Copper has plans to resume its fundraising round in the upcoming days. According to sources, British bank Barclays has plans to play its part in the funding. It will invest ‘few million dollars’ in the mentioned firm. It will have an impact on the market reinforcing the investor trust in crypto. The complete details of the investment are yet to come.