Copper Plans to Introduce Blockchain-based Tokenized Securities in 2023
Summary:
London-based crypto trading company, Copper is planning to offer tokenized securities starting next year and will first launch services in Abu Dhabi, via its affiliate Copper Securities. The firm aims to utilize blockchain technology to supply securities financing and diversified payment solutions to institutional clients. Former British Chancellor Phillip Hammond, chair of Copper, believes that embracing such technology is crucial for the financial sector. Tokenizing securities enables wider access to costly financial assets and boosts market liquidity by offering fractional ownership.
Copper, a cryptocurrency trading enterprise situated in London, has strategies to introduce tokenized securities in the early part of the upcoming year, as disclosed on Nov. 29. Spearheaded by Phillip Hammond, the former British Chancellor, the firm anticipates capitalising on the requirements of institutional investors. The preliminary launch of the service is slated for Abu Dhabi, in the United Arab Emirates, via its recently established affiliate, Copper Securities. Reportedly, they are currently liaising with local authorities to secure regulatory approval.
Copper's future plans involve utilising blockchain technology to facilitate securities financing and offer other payment solutions to its institutional clients within the next few months. The firm indicates that more than 90 markets globally will be reachable via the novel platform. Earlier this year, Copper procured its securities division, aiming to provide tokenized securities within the Abu Dhabi Global Market (ADGM), a global financial hub and free zone located on Al Maryah Island. Hammond has an established relationship with the region, having advised neighbouring Saudi Arabia's government since 2021 after receiving approval from the UK's lobbying watchdog. That same year, he was assigned as a senior advisor to Copper and subsequently assumed the position of company chair in early 2023. At the time, Hammond expressed his belief in the advantages blockchain technology could offer the financial industry, asserting, "In order to remain a significant global financial hub, the post-Brexit UK Financial Services sector must incorporate Distributed Ledger Technology into its approach."
Securities tokenization converts financial assets such as stocks or real estate into digital tokens on a blockchain. Tokenization offers access to costly assets and increases market liquidity by permitting fractional ownership, thereby granting wider ownership access to financial assets.
In 2023, asset tokenization has become a much-discussed topic, and its prominence is predicted to keep rising. In the UK, investment managers are being urged to use blockchain technology for tokenizing investment funds, moving away from conventional record-keeping systems. According to a recent report by the Investment Association, the tokenization of investment funds could enhance efficiency and transparency in the financial sector. (Ending part of the news which is irrelevant to the context is removed here.)
Published At
11/29/2023 7:15:03 PM
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