Hedera Teams Up with Copper
Hedera, a leading public decentralized network, has announced a strategic partnership with London-based cryptocurrency custodian Copper to expand institutional access to its HBAR token. The partnership, revealed on Tuesday, will enable Copper to provide custody and staking services for HBAR, along with operating an on-ramp into Hedera’s decentralized finance (DeFi) ecosystem through its ClearLoop and Connect platforms.
Copper’s Role in Expanding Institutional Access
Copper, a prominent custodian chaired by former U.K. Chancellor Philip Hammond, is well-known in the institutional crypto space, serving over 300 large institutions and crypto trading platforms. The firm offers a suite of asset management services and was among the pioneers in developing a crypto wallet utilizing multi-party computation (MPC) technology. Copper’s integration with Hedera is poised to streamline and secure institutional investors’ entry into the Hedera ecosystem, as noted by Shayne Higdon, co-founder and CEO of the HBAR Foundation.
The partnership plugs HBAR into Copper’s ClearLoop settlement network, a platform launched in 2020 that sources liquidity from a wide network of exchanges and over-the-counter (OTC) desks, including Bybit, Deribit, Kraken, and OKX. Moreover, Copper Connect, a risk management application designed for institutions, will enable users to integrate HBAR with various DeFi protocols like Aave, offering expanded utility and access to decentralized financial products.
Hedera’s Focus on Asset Tokenization
Hedera is known for its innovative “hashgraph” algorithm, a bespoke technology that differentiates it from traditional blockchain networks. The network has a strong focus on asset tokenization, a rapidly growing area within the blockchain industry. Earlier this year, Hedera saw the issuance of a BlackRock Treasury fund by blockchain firms Archax and Ownera on its platform, marking a significant milestone, although without direct involvement from BlackRock itself.
Hedera’s collaboration with Copper is expected to further enhance its position in the asset tokenization space by providing a secure and efficient pathway for institutional investors to engage with its ecosystem. The integration with Copper’s infrastructure will likely attract more institutional interest, given the firm’s reputation and extensive client base.
Institutional On-Ramp into Hedera’s DeFi Ecosystem
The inclusion of HBAR into Copper’s ClearLoop network not only boosts the liquidity of the token but also provides institutions with a secure and efficient on-ramp into the Hedera DeFi ecosystem. This integration allows institutions to leverage HBAR within various DeFi protocols, broadening the scope of financial products available to them.
Hedera has consistently attracted blue-chip names to its governing council, including tech giants like Google, FIS, Abrdn, and Dell. These partnerships underscore Hedera’s commitment to building a robust and scalable network capable of supporting the next generation of decentralized applications and financial services.
Copper’s Growing Influence in the Crypto Industry
Copper’s collaboration with Hedera highlights its growing influence in the cryptocurrency industry, particularly among institutional players. The firm’s focus on security, efficiency, and innovation has made it a preferred partner for institutions looking to navigate the complex landscape of digital assets. By integrating HBAR into its ClearLoop and Connect platforms, Copper is helping to bridge the gap between traditional finance and the burgeoning world of DeFi, offering institutions a trusted gateway into this new financial frontier.
Looking Ahead: The Future of Institutional DeFi
As more institutions explore the potential of DeFi, partnerships like the one between Hedera and Copper will be crucial in providing the infrastructure needed to support this growing interest. The secure custody and staking services offered by Copper, combined with the unique capabilities of Hedera’s network, are likely to drive further adoption of HBAR among institutional investors.
With Hedera continuing to innovate and expand its ecosystem, and Copper enhancing access and utility for institutional players, the future looks promising for both companies as they lead the charge in integrating traditional finance with decentralized technologies.
