Copper Now Enables Funds to Create Complex Crypto-Backed Securities

The service allows institutional investors to securitize a range of crypto-based products, from token trackers to complex trading strategies.

Jul 8, 2020 at 2:42 p.m. UTC

Updated Sep 14, 2021 at 9:01 a.m. UTC

Copper has launched a service that allows institutional investors to create securitized tokens for a range of crypto-based products, from token trackers to complex trading strategies.

Five funds are already using the "Catalyst" framework to create complex digital asset-based products that can be traded just like a regular stock, the cryptocurrency infrastructure provider said Wednesday.
Catalyst allows institutional investors to create and trade securitized versions of sophisticated strategies without trading or holding the digital assets themselves.
The underlying assets are custodied by Copper.
The funds already on board are using Catalyst to create securitized tokens based around arbitrage, yield and volatility trading strategies, Copper CEO Dmitry Tokarev told CoinDesk.
Another 10 are in the pipeline to use the service, Tokarev said.
Each security is an actively managed certificate (AMC), a highly flexible instrument akin to an exchange-traded fund that can be set up and issued in weeks.
The securities are given an official Swiss-registered International Securities Identification Number (ISIN).
They will be tradable on regulated European stock exchanges and subject to existing securities regulation.
Swissquote released its own volatility-tempered bitcoin AMC in November 2017, which is currently tradable on the Swiss SIX Exchange.
However, Copper's Catalyst is the first offering allowing funds to create and issue crypto-based AMCs, according to Tokarev.
London-based Copper offers infrastructure services for institutions; it released a trading tool to minimize credit risk exposure earlier this year.

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