Barclays is rumored to be investing in a cryptocurrency firm. Copper During a Market Downturn

Despite a declining global appetite for risky assets such as crypto assets, multinational banking giant Barclays is reportedly planning to invest in crypto custody firm Copper.

Sky News reported Sunday that the UK-based bank is one of several new investors in a funding round for Copper, adding that the bank would invest an undisclosed sum, most likely in the "millions of dollars" range. The fundraising will be completed in a few days.

Copper, whose advisers include former chancellor Lord Hammond, is a cryptocurrency platform that offers custody, prime brokerage, and settlement services to institutional investors putting money into digital assets.

The fundraising would bring to a close Copper's USD 500 million Series C funding round, which began in late 2021 with the crypto platform seeking funds at a USD 3 billion valuation. However, as a result of the recent cryptocurrency meltdown, Copper has reduced that figure to USD 2 billion.

Copper's target valuation has dropped as a result of the recent failures of major crypto players. In particular, crypto hedge fund Three Arrows Capital and crypto lender Celsius Network have declared bankruptcy in recent weeks, exacerbating investor skepticism about the nascent industry.

Copper, founded in 2018 by Dmitry Tokarev, counts some major venture capital firms among its investors, including LocalGlobe, Dawn Capital, and MMC Ventures. Previously, the company raised USD 50 million in a Series B funding round at an undisclosed valuation.

In mid-May, Barclays and Goldman Sachs also participated in a USD 70 million Series A funding round for the institutional crypto trading platform Elwood Technologies.