London-based crypto trading firm Copper plans to begin offering tokenized securities early next 12 months, based on reports on Nov. 29. Under the leadership of former British Chancellor Phillip Hammond, the corporate expects to capitalize on institutional investors’ demand.
The service is anticipated to be first rolled out in Abu Dhabi, United Arab Emirates, by its latest arm within the country, Copper Securities. The company is reportedly within the strategy of securing regulatory approval from local authorities.
Copper plans to make use of blockchain technology to offer securities financing and other payment solutions to institutional clients over the approaching months. More than 90 markets all over the world will probably be accessible through the brand new platform, said the corporate.
Copper acquired its securities arm earlier this 12 months with the goal of offering tokenized securities inside the Abu Dhabi Global Market (ADGM), a global financial center and free zone on Al Maryah Island.
Hammond has long-standing ties to the region. He has been advising the federal government of the neighboring country Saudi Arabia since 2021, following approval by the United Kingdom’s lobbying watchdog. In the identical 12 months, Hammond was appointed as a senior adviser to Copper, before taking up as the corporate’s chair earlier 2023. Back then, Hammond shared his thoughts on how blockchain technology can profit the financial sector:
“I remain firmly of the view that the post-Brexit U.K. Financial Services sector must embrace Distributed Ledger Technology as a key a part of its technique to remain a serious global financial center.”
Securities tokenization involves converting financial assets like stocks or real estate into digital tokens on a blockchain. Tokenization facilitates access to expensive assets and increases market liquidity by allowing fractional ownership, thus democratizing ownership of monetary assets.
Assets tokenization has been a hot topic in 2023, and its popularity is more likely to proceed growing in the long run. In the United Kingdom, investment managers are being encouraged to make use of blockchain technology to tokenize investment funds, moving away from traditional record-keeping systems. A recent report published by the Investment Association argued that the tokenization of investment funds can result in a more efficient and transparent financial industry.
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