London-based Crypto Trading Firm Copper to Offer Tokenized Securities in 2023
According to reports, London-based crypto trading firm Copper is planning to launch its tokenized securities service early next year. The company, under the leadership of former British Chancellor Phillip Hammond, aims to cater to the growing demand from institutional investors. The service will be initially introduced in Abu Dhabi, United Arab Emirates, through Copper Securities, the company’s new arm in the country. Copper is currently seeking regulatory approval from local authorities. By utilizing blockchain technology, Copper plans to provide securities financing and payment solutions to institutional clients across more than 90 markets worldwide.
Copper’s Expansion into Abu Dhabi
Copper acquired its securities arm earlier this year with the intention of offering tokenized securities within the Abu Dhabi Global Market. This international financial center and free zone on Al Maryah Island will serve as a hub for Copper’s operations. The company sees great potential in the region and aims to capitalize on the opportunities it offers.
The Role of Phillip Hammond
Phillip Hammond, who has strong ties to the Middle East, has been advising the government of Saudi Arabia since 2021. In addition, he joined Copper as a senior adviser before becoming the company’s chair in 2023. Hammond believes that blockchain technology is crucial for the post-Brexit U.K. Financial Services sector to maintain its position as a global financial center.
The Significance of Securities Tokenization
Securities tokenization involves converting traditional financial assets into digital tokens on a blockchain. This process allows for fractional ownership and increases market liquidity, making expensive assets more accessible and democratizing ownership. Asset tokenization has gained significant attention in 2023 and is expected to continue growing. In the United Kingdom, investment managers are encouraged to embrace blockchain technology for tokenizing investment funds, leading to a more efficient and transparent financial industry.
Hot Take: Tokenized Securities Set to Revolutionize the Financial Industry
The introduction of tokenized securities by Copper signifies a major step forward in the adoption of blockchain technology in the financial sector. By leveraging the benefits of blockchain, such as increased transparency and efficiency, Copper aims to meet the growing demand from institutional investors. The expansion into Abu Dhabi and the partnership with former British Chancellor Phillip Hammond demonstrate the company’s commitment to establishing itself as a global leader in tokenized securities. As asset tokenization gains traction, it has the potential to revolutionize traditional financial systems by democratizing access to expensive assets and increasing market liquidity.
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