Near-instant access to capital for institutional digital asset managers
London, UK, 29/10/2020: Copper, the London-based digital asset infrastructure provider, today announced the launch of a new margin trading lending facility in partnership with Tesseract.
Copper clients can now borrow funds, which are then instantly transferred into their trading accounts and use it to safely trade on a range of major exchanges.
In addition to secure settlements, clearing, execution and custody, the launch of a margin lending facility means that Copper clients now have access to a full suite of prime brokerage tools in crypto. Crypto investors can now implement a wider range of trading strategies using a legitimate source of capital within a secure infrastructure.
Traders using the margin trading lending facility will be able to post margin in a variety of digital assets, borrow a set of predefined tokens, and immediately trade the whole amount via Copper’s highly secure ‘Walled Garden’ framework, which already includes more than 25 of the world’s largest exchanges including Kraken, Binance, and Bitmex. Additionally, clients will be able to activate leveraged accounts through the Copper platform.
Tesseract is building a range of software APIs to enable secure integration with several additional major exchanges where they will be able to monitor clients’ positions, feed the information into Tesseract’s risk engine, and produce automatic margin calls to enable comprehensive risk management for investors.
Dmitry Tokarev, Chief Executive Officer, Copper Technologies, said: “True prime brokerage for digital assets is an important step forward for institutions looking to trade in the crypto industry. To date, margin lending in crypto has often lacked credibility, associated with unaccountable offshore companies. Enabled by ground-breaking technology from the team at Tesseract, our margin lending facility is underpinned by industry-leading security and legitimately sourced capital, allowing institutional investors to trade digital assets safely.
“The way that traditional financial institutions view cryptoassets is undergoing a significant change. Now, more than ever, hedge funds, asset managers and family offices are looking to crypto as an alternative to other investments. The issue that they continue to face is that many of the more sophisticated trading facilities found in traditional finance simply do not exist in the crypto space.
“At Copper, we are working to change that. Offering true prime brokerage is a part of our wider bid to open crypto to more traditional investors and enable digital assets to become increasingly mainstream. Working with partners like Tesseract is streamlining the process and reflects a rapidly maturing space.”
Yichen Wu, Chief Executive Officer, Tesseract, said: “We are delighted to partner with Copper in pioneering cross trading venue margin lending for digital assets. It has been an absolute pleasure working with the Copper team in the past few months and are impressed by their rigorousness in thinking, excellence in execution and persistence in commercial drive.
“Tesseract’s expertise in institutional digital asset lending solutions and leading collateral risk management technology combined with Copper’s cutting edge custodial offering will be a transformative improvement for investment funds with borrowing needs and pave the path for broader institutionalisation of the entire digital asset sector.
“Our solution also offers institutional grade investors a secure and superior opportunity to earn additional returns by lending their balance sheet. We are humbled by the overwhelming positive feedback we have received from both borrowers as well as lenders during the pilot phase. As the list of supported exchanges and tokens grows over the next couple of months, we foresee broader adoption across the board.”
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About Copper Technologies
Founded in 2018 by Dmitry Tokarev, Copper provides a gateway into the cryptoasset space for institutional investors, offering custody, trading, prime brokerage and more for over 150 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. For more information, please visit: www.copper.co
Tesseract was founded in 2017 and has since offered digital asset management solutions worldwide. Tesseract is a forerunner in the evolving digital asset sector and a global leader in institutionally focused digital asset lending. Tesseract enables borrowers to increase their capital efficiency and institutional grade investors with digital asset positions to leverage their balance sheet by lending their holdings.
Headquartered in Helsinki, Finland, Tesseract was among the first companies in Europe to be licensed as a 5AMLD compliant virtual currency provider when it obtained the registration as of October 2019. Tesseract lists among its equity investors one of the largest asset managers in the Nordics, Nasdaq-listed Taaleri Plc. For more information, please visit: tesseractinvestment.com