Cryptocurrency custody and trading firm Copper is set to venture into the digital securities brokerage realm in Abu Dhabi early next year, according to CoinDesk. The newly-formed Copper Securities, dedicated to execution and custody services, is collaborating with the Financial Services Regulatory Authority (FSRA) in Abu Dhabi to secure the necessary approvals by early 2024. This strategic move follows Copper's recent acquisition of Securrency Capital, a division of the Securrency tokenization platform based in Abu Dhabi, which was not part of the acquisition of Securrency Inc. by the Depository Trust & Clearing Corp. (DTCC) in October.
Abu Dhabi is increasingly attracting crypto businesses seeking regulatory clarity for digital assets, and Copper sees the region as a hub for institutional assets. Copper CEO Dmitry Tokarev referred to Abu Dhabi as 'the capital of capital,' emphasizing its focus on asset management and its appeal to institutional clients. Tokarev highlighted the presence of major institutions, hedge funds, and sovereign wealth funds in the region, even though the retail market may not be as extensive.
The move reflects the ongoing convergence between traditional financial infrastructure (TradFi) and blockchain technology. As banks and asset managers embrace tokenization of traditional financial assets, Copper Securities aims to provide services such as automated processing of corporate actions, settlements, top-ups, and rebalances. Furthermore, it plans to introduce securities financing, lending, and payment applications in the coming year. This expansion underscores the industry's broader trend towards integrating blockchain into traditional financial services.
