Elwood Receives Authorization as a Service Company from UK Financial Conduct Authority

Rhea-AI Summary

Elwood Technologies LLP has received regulatory approval from the UK Financial Conduct Authority (FCA) as a service company, making it one of the first digital asset technology providers to do so. The company's execution management system (EMS) has been authorized in relation to security tokens and derivatives, allowing clients to trade digital assets on a global scale. Elwood's SaaS platform, which includes risk representation and analytics tools, has also received SOC2 and ISO 27001 information security certifications. The company is backed by leading global financial firms, including Dawn Capital, Goldman Sachs, Barclays, Citi, and others.

Positive

• Elwood Technologies LLP has become one of the first digital asset technology providers to receive FCA regulatory approval as a service company.
• The company's EMS platform allows clients to connect to global crypto exchanges and OTC venues through a single application or API to trade digital assets.
• Elwood's SaaS platform has received SOC2 and ISO 27001 information security certifications.
• The company is backed by leading global financial firms, including Dawn Capital, Goldman Sachs, Barclays, Citi, and others.

Negative

• None.

Financial Analyst

The authorization of Elwood Technologies by the UK Financial Conduct Authority represents a significant milestone in the integration of digital assets into mainstream finance. This development is likely to enhance investor confidence, particularly among institutions, in the digital asset market. With the backing of prominent financial firms, Elwood's positioning as a compliant and regulated SaaS platform could attract further institutional investment into cryptocurrencies and related products.

From a financial perspective, this authorization may serve as a catalyst for increased transaction volumes on Elwood's platform, potentially leading to higher revenue streams. Moreover, the company's alignment with stringent regulatory standards could provide a competitive advantage, as trust and compliance become increasingly critical for investors navigating the digital asset space.

Legal Expert

Elwood's FCA authorization underscores the UK's evolving regulatory landscape for digital assets. It demonstrates a proactive approach by regulators to establish a framework that balances innovation with investor protection. The FCA's rigorous standards imply that Elwood has met high levels of operational integrity, customer protection and compliance with anti-money laundering directives.

This regulatory approval could set a precedent for other digital asset firms seeking legitimacy and could influence future regulatory policies. It also highlights the importance of legal due diligence and robust compliance mechanisms for companies operating in the fintech and digital asset sectors.

Market Research Analyst

The endorsement by the FCA may signal a broader market trend towards the institutionalization of digital assets. The impact on the stock market could be multifaceted, potentially affecting the valuation of companies within the digital asset ecosystem. Entities that achieve regulatory approval may experience an uptick in investor interest, which could translate into positive stock performance, especially for Elwood's backers.

Given the novelty of the digital asset class, the move by Elwood could encourage other technology providers to seek similar regulatory approvals, potentially leading to increased innovation and competition within the sector. This trend may also influence the strategies of traditional financial institutions as they adapt to the growing prominence of digital assets.

Becomes one of the first digital asset technology providers to receive FCA regulatory approval as a service company

LONDON, Jan. 24, 2024 /PRNewswire/ -- Elwood Technologies LLP ("Elwood" or "the Company"), a leading software-as-a-service ("SaaS") platform that provides institutional-grade access to digital asset exchanges and liquidity venues, today announced it has been authorised as a service company by the UK Financial Conduct Authority ("FCA"). This authorization applies to Elwood's execution management system ("EMS") in relation to security tokens and derivatives. The Company's EMS platform allows clients to connect to global crypto exchanges and OTC venues, through a single application or API, to trade digital assets.

Chris Lawn, CEO, Elwood, said, "Elwood is proud to become one of the first digital asset technology firms authorised as a service company by the FCA. Institutional investors are increasingly looking for a digital asset SaaS platform that meets robust regulatory standards akin to those in traditional finance. Securing FCA approval supports this need and marks another step in Elwood's mission to provide an end-to-end digital asset platform in a regulated and transparent manner from the UK, one of the world's leading financial services jurisdictions."

Elwood's SaaS platform – which includes risk representation and analytics tools ("PMS") in addition to the EMS – has already received SOC2 and ISO 27001 information security certifications.

The Company is backed by leading global financial firms, including Dawn Capital and Goldman Sachs (NYSE: GS), alongside Barclays (LON: BARC), Chimera Capital, Citi (NYSE: C), CommerzVentures, DCG, Flow Traders (Euronext: FLOW), Galaxy Digital, HashKey and Two Sigma.

Josh Bell, Elwood Board member and General Partner at Dawn Capital, said, "This is a pivotal moment for Elwood on its ambitious growth journey. The FCA only authorises fintechs that meet incredibly stringent regulatory standards. Achieving this status is further proof of Elwood's market-leading position, and will help the company deliver for major institutional investors in the long term. A rapidly growing number of institutions today want what Elwood offers: a fully regulated, compliant platform that can aggregate prices, route orders, and provide broad access to liquidity. What a great start to 2024, and congratulations to the entire team."

Mathew McDermott, Global Head of Digital Assets at Goldman Sachs, said, "Today's announcement shows Elwood's progress in meeting the consistently increasing need for institutional grade, regulatory compliant digital asset infrastructure. We are excited to be a key stakeholder of Elwood Technologies and encouraged by the strides taken in the UK to bring digital asset companies in line with the strong regulatory expectations of the traditional finance world."

About Elwood:

Elwood is an established, global fintech building digital assets infrastructure for institutional investors. Its seamless end-to-end SaaS platform connects to global crypto exchanges and liquidity providers and delivers execution and portfolio analytics functionality with advanced risk management tools for digital asset markets. Built by industry experts with decades of combined experience in traditional finance and digital technology, Elwood provides market infrastructure at scale, enabling financial institutions, neobanks, and corporations to access digital asset markets quickly and efficiently.

CONTACT INFORMATION
Jennifer Berlin
Forefront Communications
+44 (0) 7375 288 641
jberlin@forefrontcomms.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/elwood-receives-authorization-as-a-service-company-from-uk-financial-conduct-authority-302042331.html

SOURCE Elwood Technologies

What regulatory approval has Elwood Technologies LLP received from the FCA?

Elwood Technologies LLP has received regulatory approval from the UK Financial Conduct Authority (FCA) as a service company, making it one of the first digital asset technology providers to do so.

What does Elwood's EMS platform allow clients to do?

The company's EMS platform allows clients to connect to global crypto exchanges and OTC venues through a single application or API to trade digital assets.

What certifications has Elwood's SaaS platform received?

Elwood's SaaS platform has received SOC2 and ISO 27001 information security certifications.

Who are the leading global financial firms backing Elwood Technologies LLP?

The company is backed by leading global financial firms, including Dawn Capital, Goldman Sachs, Barclays, Citi, and others.