Barclays, a major UK lender, is making a bold move into the world of cryptocurrency by reportedly buying a stake in Copper, a crypto company that offers services such as custody, prime broking, and settlement for institutional investors in digital assets. The news, reported by Bloomberg, comes as a surprise as the crypto market has faced significant challenges over the past year.
The investment from Barclays, worth “a few million” dollars, marks a significant vote of confidence in Copper and the future of cryptocurrency. However, neither Barclays nor Copper have responded to requests for comment, leaving the market speculating on the details of the deal.
The crypto industry has experienced a tough year, with major price drops, coin collapses, and bankruptcies shaking investor confidence. This has led to a general decrease in funding for private crypto companies, with startups across the sector feeling the impact of the market volatility.
According to industry experts, the funding landscape for crypto companies has shifted significantly in recent months. The second quarter saw a notable decrease in investment, with only $6.76 billion going to crypto companies, the lowest level in a year. This has led to concerns about layoffs and lower valuations in the industry.
Despite the challenges facing the crypto market, Barclays’ investment in Copper signals a continued interest in the potential of digital assets. As the industry navigates these uncertain times, it will be interesting to see how traditional financial institutions like Barclays continue to evolve their approach to cryptocurrency.
