Copper, a cryptocurrency custodian based in London, has formed a new partnership to enhance institutional access to the Hedera blockchain. This collaboration will enable Copper to manage custody and staking for Hedera’s HBAR token and establish a gateway into Hedera’s decentralized finance (DeFi) ecosystem.
Hedera is renowned for its distinctive hashgraph algorithm and is increasingly recognized in the asset tokenization sector. Notably, blockchain firms Archax and Ownera launched a BlackRock Treasury fund on Hedera this year, although BlackRock itself was not directly involved. Shayne Higdon, CEO of the HBAR Foundation, mentioned that this partnership provides institutional investors with a streamlined and secure method to engage with the Hedera network.
Copper, chaired by former U.K. Chancellor Philip Hammond, supports over 300 major institutions and trading platforms. The firm is well-regarded for its advanced asset management solutions, including a crypto wallet built with multi-party computation (MPC) technology. With this partnership, HBAR will be integrated into Copper’s ClearLoop network, which connects with major exchanges and over-the-counter (OTC) desks. Additionally, Copper Connect, a Google Chrome extension, will enable institutions to utilize HBAR with various DeFi applications such as Aave.
Strategic Integration of HBAR and Copper’s Infrastructure
The collaboration between Copper and Hedera signifies a strategic move to enhance institutional participation in the blockchain sector. Hedera, which raised $100 million in 2018, has drawn the attention of high-profile companies like Google and Dell to its governing council. This partnership is expected to attract more institutional investors to Hedera’s network by offering them secure and efficient access to HBAR and the broader DeFi ecosystem.
Copper’s role in this partnership involves leveraging its expertise in asset management and advanced technological solutions to support the custody and staking of HBAR. The integration of HBAR into Copper’s ClearLoop network is a critical aspect of this collaboration. The ClearLoop network is designed to connect institutions with major exchanges and OTC desks, facilitating seamless transactions and enhancing liquidity. This integration is expected to provide institutional investors with a more efficient and secure way to trade and manage their HBAR holdings.
Furthermore, the introduction of Copper Connect, a Google Chrome extension, will enable institutions to interact with various DeFi applications using HBAR. This extension is designed to provide a user-friendly interface for institutions to access DeFi services, thereby promoting the adoption of Hedera’s blockchain technology in the institutional sector. By enabling access to applications like Aave, Copper Connect will help institutions explore new investment opportunities within the DeFi ecosystem.
The Future of Institutional Engagement with Blockchain Technology
The partnership between Copper and Hedera underscores the growing importance of secure and efficient access to blockchain technology for institutional investors. As the blockchain sector continues to evolve, collaborations like this are crucial in promoting the adoption of advanced technologies and facilitating the integration of traditional financial institutions with the digital asset ecosystem.
Hedera’s unique hashgraph algorithm and its focus on asset tokenization make it an attractive platform for institutional investors. By partnering with Copper, Hedera aims to provide these investors with the tools and infrastructure necessary to navigate the complex world of blockchain technology. The integration of HBAR into Copper’s network and the introduction of Copper Connect are significant steps towards achieving this goal.
In conclusion, the collaboration between Copper and Hedera is poised to enhance institutional access to blockchain technology, offering secure and efficient solutions for managing digital assets. This partnership reflects the ongoing efforts to bridge the gap between traditional finance and the emerging digital asset ecosystem, paving the way for increased institutional engagement and investment in the blockchain sector.