Copper to Securitize Custom Indices with ‘Catalyst’
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 tradition 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.
US Virus Spike Impacts EUR/USD Forex Market
- US Virus Cases Rise by Record Number Tuesday
- Major Forex Markets Falling on Negative News
- American Markets Open Higher as China Stocks Surge
The US reported another surge in coronavirus cases for Tuesday. This comes after a difficult start to the week for the economy following the July 4th holiday celebrations. Forex trading in both the Euro and Pound was impacted with both pairs slipping lower and having their own worries. This comes as American markets slumped hundreds of points in the previous session, and European markets also traded lower on Wednesday.
Virus Cases Surge as US Struggles to Get Back on Track
Tuesday saw the biggest one-day spike on record for US coronavirus cases according to data released today. This number could be in part due to a reporting backlog following the American Independence Day holiday, though hot spots across multiple states continue to see a marked rise in case numbers. The average number of reported cases has jumped 25% in the past week.
Texas, California, Florida, and Arizona in particular continue to struggle with the increasing numbers. These states have accounted for almost half the total number. Despite the increasing numbers with a stark total of 3 million US cases approaching, plans are still being made for American schools to reopen in fall. This move appears to run contrary to the views of many experts, including White House health advisor Dr. Anthony Fauci who has commented that the country is not in total control of the virus.
Forex Market Majors Impacted by Case Rise
Forex trading would appear to have been impacted on Wednesday by news of rapidly rising case numbers in the US. This has worked to compound the woes of both the EUR/USD, and the GBP/USD with both falling further today as they also suffer from their own domestic issues. The EUR/USD was trading down close to 1.13, while the GBP/USD was below the 1.255 mark.
The reported increase in coronavirus cases across many parts of the US will give strength back to the greenback which had been weakening slightly as forex brokers noted an improving market sentiment. This will certainly be dampened as traders retreat to the US Dollar safe haven for the moment. On the Euro side, doubts over the €500 million EU fund stimulus persist and continue to hamper the currency. Austria, Netherlands, Sweden, and Denmark have still failed to agree on this deal with the ECB rates decision upcoming next week.
Markets Open Positively After Tuesday Slump
Wall Street began to bounce back on Wednesday with the Dow Jones up more than 200 points at the opening bell. Traders seemingly unconcerned with the virus numbers surge. The White House too has downplayed the economic impact of the spike. Economic advisor Larry Kudlow commenting that the data suggests a v-shaped recovery.
Markets in China too have continued to build on a very positive start to the week. The Shanghai composite continued to soar with a further gain of almost 2% to add to a 6% surge on Monday.
Blockchain Capital’s BCAP Token Outperforms Market in Q2, 2020
Today they announced that the net asset value (“NAV”) of each BCAP token as of June 30th, 2020, is $4.47, based on the NAV of the underlying venture capital fund, Blockchain Capital III Digital Liquid Venture Fund, LP. Weekly NAV updates can be found at: http://www.loop.blockchain.capital/
The BCAP NAV finished up 25.6% for the second quarter of 2020. The Q2 increase was driven by the liquid/token portion of the fund’s portfolio. The NAV is up 22.8% year-to-date.
The BCAP portfolio is up 347.0% since inception, post-STO from April 2017, and has a Net IRR of 59.0%. Performance figures are net of all fees and estimated carry.
The composition of the portfolio as of June 30th, 2020 is as follows:
While there are plenty of traditional cryptocurrencies in the portfolio, some special companies to note are Securitize and Harbor which are heavily involved in the digital securities and security tokens space.
About Blockchain Capital
Blockchain Capital was founded in 2013 with the mission of helping entrepreneurs build world-class companies and projects based on blockchain technology – providing founders with the tools they need to succeed: capital, domain expertise, partnerships, recruiting and strategy.
Blockchain Capital is one of the earliest and most active venture investors in the blockchain industry and has financed 90+ companies and projects since its inception. The company invests in both equity and tokens and is a multi-stage investor. Blockchain Capital also pioneered the world’s first ever tokenized investment fund and by extension the blockchain industry’s very first security token, the BCAP, which the company sold through a security token offering in April of 2017.
The company’s view is that blockchain technology holds the promise to disrupt legacy businesses and create whole new markets and business models. Blockchain Capital believes its network of entrepreneurs, investors and advisors brings unrivaled resources to founders who want to leverage blockchain technology to change the world in profound ways.