, a full-service institutional lending and borrowing platform, has partnered with institutional digital asset infrastructure provider Copper. This alliance resulted in the joint development of Copper Pledge, a deployable tri-party collateral management solution for digital asset markets.
This partnership provides digital asset lenders with much-needed tools for optimising and de-risking their portfolios. Solutions like these are desperately needed in light of recent market failures, caused in part by risky lending and leverage practices.
“Institutional finance players are unlikely to bring their immense collection of assets into digital asset credit markets until collateral risk and scalability issues are resolved,” said Michael Guzik, Co-Founder and CEO of CLST. “CLST brings together key processes and systems that help bridge information asymmetries and embed controls in the credit lifecycle. On that note, we are thrilled to partner with leading custodian Copper on collateral management, a natural extension of our value proposition and a necessary tool for lending at scale.”
“Current market conditions are bringing trust to the forefront of digital asset markets. We believe very strongly in the future of digital assets, and we know that regulated intermediaries are critical to financing markets. We’re excited to see CLST join our new and reliable infrastructure which will help to re-establish trust, mature the crypto lending market, and safeguard against future turbulence and unscrupulous lending. Altogether, these improvements should give more confidence for institutions and market makers, who are essential for building the momentum of digital assets adoption,” said Dmitry Tokarev, CEO of Copper.
Loans originated on CLST markets will utilise APIs to integrate with Copper, enabling borrowers to safely pledge collateral to lenders, protected by an English law account control agreement and security interest. Additionally, the platform offers seamless execution and post trade servicing including top-ups, margin maintenance, and even default management.
CLST (pronounced “Caeleste”) is creating a global network of institutional credit channels, enabling institutional lenders to deploy capital across diverse opportunities in capital market credit and corporate credit. CLST bridges the asymmetry of information between borrowers and lenders by incorporating an extensive compliance and onboarding process that can scale to serve all users of the marketplace. Users can directly or indirectly risk- assess and -manage each opportunity throughout the credit lifecycle from deal structuring and negotiation to covenant management, and finally to repayment or default/liquidation management.
Since being founded in 2018, Copper has been building the standard for institutional digital asset infrastructure with a focus on custody and collateral management. Underpinned by multi-award-winning technology, Copper has built a comprehensive and secure suite of products and services required to safely custody and trade digital assets. At the core of Copper’s infrastructure is ClearLoop, which enables clients to manage collateral and settle trades in near real time across multiple exchanges, while mitigating counterparty risk and increasing capital efficiency.