Over the past few years, one thing has been made clear within digital securities. This would be a need to develop services which ‘bridge the gap’ between traditional markets, and those of the future. Simply creating new services and offerings will not, necessarily, spur adoption. Rather, by providing an easy transition for those already enveloped in financial markets, seems to be a more prudent path to follow.
With this in mind, Copper has announced the creation, and launch, of a new service, dubbed ‘Copper Catalyst’.
Simply put, Copper describes Catalyst as providing the ability to ‘enable crypto funds to create and issue securities on digital assets rapidly, and cost-effectively’.
What does it do? And How?
Catalyst allows for institutional investors to gain access/exposure to cryptocurrencies – all while removing the need for self-storage. This is done through the use of actively-managed certificates (AMCs). As a result, by using AMCs, Copper is enabling cryptocurrency indices to be treated as clearable securities.
Bringing even greater appeal to Catalyst, is the use of Swiss ISINs – meaning the securities will be fully bankable (easily converted to cash). As a result, access will be provided through various regulated European exchanges.
To date, Catalyst is the only service of its kind. Depending on its success, there will surely be competitors that arise in the future.
ISIN is short for ‘International Securities Identification Number’. These numbers are attached to specific issuances of stock, and provide information on the underlying product.
Think of an ISIN as being similar to a VIN (Vehicle Identification Number) on your automobile. When decoded, a VIN will provide information, such as date of manufacturing, options, and etcetera. Similarly, when decoded, an ISIN will provide information, such as a stock identifier, issuance country, etc.
An ISIN is used primarily to identify the underlying product, reducing the risk of various forms of fraud.
Beyond offering the various capabilities discussed above, Copper notes another major draw towards Catalyst – cost savings.
They attribute this cost savings, primarily, to the ‘initial and on-going regulatory compliance’. By offering various services, surrounding KYC/AML, trade management, and more, Copper surmises that clients will save, both, time and money. For example, they provide the following comparisons between utilizing the Catalyst suite vs. independent sourcing of services.
- Completion in days
- Completion in months
Upon announcing the launch of Catalyst, Copper CEO, Dmitry Tokarev, took the time to comment. He states,
“The crypto fund industry has shown enormously promising growth over the last decade, with impressive strategies and excellent return for investors. But it is no secret that there has been a clear barrier to their graduation into the investment mainstream: the lack of feasible securitisation options. With sky-high costs and extensive compliance issues associated with most available structures, there is a gulf between traditional financial markets and this next generation of funds: a gulf that Copper Catalyst will bridge.”
With the launch of Catalyst, Copper now has a well-rounded suite of services. The following are just a few examples.
As this product suite rounds in to form, Copper has the potential to become a leader in a sector rife with potential.
The development, and launch, of Catalyst is a promising sign. It shows that Copper is not squandering their recently completed Series A.
We recently covered the success of this funding round, as Copper was able to generate $8M in investments through a variety of companies. To learn more about this round, and those that participated, make sure to peruse the following article.
Founded in 2018, Copper maintains headquarters in London, UK. Above all, the team at Copper is working to develop a comprehensive suite of services, tailored towards digital assets.
CEO, Dmitry Tokarev, currently oversees company operations.
While their services have expanded well beyond simply that of custody, this is certainly an area of speciality for the company. Over the past year, we have touched on various instances of adoption, including that of SWARM, as they turned to Copper to custody security tokens.