Named CopperConnect, the tool allows investors to earn interest on assets protected by a secure infrastructure
CopperConnect eliminates operational security concerns for institutional investors, granting access to ~$14bn untapped liquidity locked in DeFi
Copper.co, the London-based digital asset infrastructure provider, today announced the launch of CopperConnect – the first ever dedicated decentralized finance (DeFi) tool for crypto institutions.
CopperConnect provides institutional investors, like crypto funds, with a highly secure way to connect digital assets stored in Copper’s multi-party computation (MPC) wallets with decentralised applications (dApps). This allows investors to lock their assets into DeFi ‘smart contracts’ and tap into the liquidity currently locked in DeFi, valued at more than $14 billion.*
CopperConnect works via a simple, highly secure Google Chrome application.**
When an institution deposits cryptoassets onto a DeFi pool, they are effectively contributing to a decentralised pool of assets that can be borrowed from at interest by individuals or businesses. This means that institutions that deposit funds onto a DeFi pool are able to earn passive income from their assets.
In the past, the DeFi space was viewed as too volatile for many crypto funds. However, over recent months, the number of unaudited DeFi projects (i.e. projects where their smart contracts have not been security checked by third-party experts) have decreased, and fluctuations in value of DeFi markets have become less dramatic. As a result, the level of risk is now more manageable for institutions. This has led to high demand from institutional crypto investors for secure ways to gain exposure to the DeFi marketplace – a demand that CopperConnect satisfies.
Copper’s infrastructure ensures the security of assets throughout the DeFi lifecycle, ensuring that assets are secure when under custody, during transfer, and when locked into a smart contract to be transferred onto a DeFi Pool. When withdrawing, assets can only be returned to the wallet from which they came.
Katrina Daminova, Head of Product, Copper.co, said: “Over the past three months, there has been a lot of excitement about the potential of DeFi for crypto institutions. The prospect of being able to earn interest on assets that would otherwise just be sitting in a secure wallet is a potential game-changer for any crypto-fund. However, up until very recently, the lack of security auditing coupled with radical value drops on major DeFi projects have driven up the risk and deterred institutions from investing."
“But the tide has rapidly turned – only last month, DeFi audit firms reported an overwhelming demand from DeFi companies to get their projects audited. This push for credibility has come with a notable stabilisation across the sector, and finally institutions are looking at DeFi as a legitimate channel to earn revenue, especially when many other financial markets are more volatile or weaker than normal.
“Up until today, there was only one real remaining barrier to entry for firms – being able to transfer their assets into dApps securely and efficiently. I am very excited to say that we have overcome this barrier with CopperConnect. We have taken our industry-leading security, which forms the foundation of Copper’s platform, and applied it smart contracts, allowing our clients to participate in this exciting new space.”
Stani Kulechov, CEO at Aave, the decentralized non-custodial money market protocol, said: “In recent months, we have seen a significant increase in the number of institutions looking to deposit liquidity onto our project. However, to date, institutions have not had the tools available to comply with their exacting risk management rules."
“CopperConnect eliminates almost all operational risk considerations for institutions, and will allow for a significant increase in the liquidity deposited on our platform. We believe that this injection will help to usher in the next phase for DeFi, enabling a period of growth and increasing credibility across the sector.”
Juan David Mendieta, Co-Founder & CSO, Keyrock said: “In a rapidly evolving space, where new financial services and trading opportunities are created every day, its essential that we’re able to connect securely to DeFi pools as quickly as possible. Copper’s browser extension means access and execution on DeFi and Centralised exchanges from one central control point.”
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*According to DeFi Pulse as of 14:00 GMT, 24/11/2020
**CopperConnect is available for download via the Chrome Web Store HERE
Founded in 2018 by Dmitry Tokarev, Copper Technologies provides a gateway into the cryptoasset space for institutional investors, offering custody, trading, prime services and more for over 100 digital assets with security, speed and control for its clients at the core. It is committed to providing a flexible solution for institutional investors that can adapt to the changing cryptoasset space, while enabling far greater transparency and control for asset managers.
Copper’s fully integrated products are unique in the cryptoasset space. Other crypto custodians will often charge for withdrawals, lack clarity in trading locations, or offer poor security, and will usually offer a limited suite of services. Copper is different. Underpinned by multi-award-winning custody, Copper has built a comprehensive and secure suite of the tools and services required to safely acquire, trade, and store cryptocurrencies.
At the core of Copper’s infrastructure is ClearLoop, a framework that connects the universe of custodians and exchanges in one secure trading loop — with real time settlement across the network. Integrated with a number of leading crypto exchanges including Deribit, AAX, Bitfinex*, CoinPass, Deversifi, and Xena, ClearLoop has already transformed the way in which institutional investors can engage in the cryptoasset space since launching in May 2020.
*Please note that the ‘trust structure’ and its related collateral arrangements do not currently apply to Bitfinex.
Our settlements and clearing service is backed by our award winning custody technology
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