New solutions for a new realm of risk
We hear from Dmitry Tokarev, CEO of Copper, on ClearLoop - a unique instant offline transfer and settlement tool designed to eliminate the avalanche of risks associated with delayed settlement.
The past 12 months have seen a seismic shift in the way institutions look at crypto.
Thanks to its ability to connect counterparties and transfer value at a fraction of the cost and time of traditional banking services, it’s no surprise that a growing number of financial institutions, publicly traded companies and even a handful of governments are looking more closely at this new financial vehicle and the blockchain technology that underlies it.
The challenge however lies in how to securely integrate, store and manage digital assets. And with blockchain confirmation times being extremely slow during volatile periods when asset managers need access the most, better solutions for instant settlement finality were needed to measure up to the traditional finance world.
Counterparty risk and security concerns such as hacking, unsolicited withdrawals, and private key mismanagement are widely regarded as the biggest blocking factors to mass crypto adoption.
Dmitry Tokarev, CEO at Copper, comments: “As the size and global reach of crypto markets has grown, so have opportunities for exploits. In fact, reports show that some $3.8bn in cryptocurrency was stolen in 2020 alone.”
“Three years ago, I founded Copper to provide the infrastructure layer desperately needed by institutions to hold and trade digital assets securely.” He added. “Traditional financial institutions foraying into this space have to address certain operational challenges when trading across crypto exchanges, because you can’t custody and settle assets the same way you do in traditional asset management.”
“Firstly, in crypto most of the trading venues are not regulated. And secondly, few custodians offer connectivity to exchanges in a secure and efficient fashion, which makes it difficult for managers to confidently assure investors that their assets are secure at all times during movements across the blockchain.”
Copper provides a suite of technology and prime brokerage solutions ranging from flexible custody to margin lending and over-the-counter (OTC) execution, along with ClearLoop - a unique instant offline transfer and settlement tool designed to eliminate the avalanche of risks associated with delayed settlement.
ClearLoop enables customers to trade via exchanges directly from their custody account, thus eliminating the risk of those assets being hacked, frozen or misappropriated in transit or while at the venue. Since its launch in May 2020, ClearLoop is integrated with more than 30 leading exchanges and has cemented its reputation as a vital piece of infrastructure for pioneering institutions looking to enter the digital assets market.
“Every sophisticated investor will naturally ask questions about the safety of their funds and until recently, hedge fund managers had no good answer,” Tokarev said. “Thanks to the availability of products such as ClearLoop, an asset class once seen as risky and confusing has become an area of opportunity for institutional investors. At a time when digital assets stand poised to capture more of the world’s wealth, we’re immensely proud to offer best-in-class custody infrastructure that is empowering some of the biggest players from the traditional institutional community to come on board.”
About Copper
Founded in 2018 by Dmitry Tokarev, Copper provides a gateway into the cryptoasset space for institutions by offering custody, prime brokerage, and settlements across 250 digital assets and more than 40 exchanges. It is committed to providing flexible solutions for institutional investors that can adapt to the changing crypto asset space while enabling far greater transparency and control for asset managers.
Copper’s fully integrated products are unique in the crypto asset space. Underpinned by multi-award-winning custody, Copper has built the comprehensive and secure suite of tools and services required to safely acquire, trade, and store cryptocurrencies, including access to margin lending trading facilities and the DeFi space.
At the core of Copper’s infrastructure is ClearLoop, a framework that connects a universe of exchanges in one secure trading loop — with real-time settlement across the networks. Integrated with market-leading spot and derivative crypto exchanges, ClearLoop has already transformed the way in which institutional investors can engage in the crypto asset space since launching in May 2020.
For more information, please visit: www.copper.co