- Hedera has formed a significant partnership with crypto custodian firm Copper to expand institutional access to HBAR tokens.
- Copper will provide custody and staking services for Hedera’s HBAR tokens, alongside facilitating DeFi entry points for institutional users via its ClearLoop and Connect platforms.
- Former UK Prime Minister Philip Hammond chairs Copper, which boasts a client roster exceeding 300 major institutions and crypto trading platforms.
This article explores the recent collaboration between Hedera and Copper, focusing on its implications for institutional crypto adoption and DeFi integration.
Comprehensive Custody and Staking Services for HBAR Tokens
London-based crypto custodian Copper is set to provide robust custody and staking services specifically for Hedera’s HBAR tokens. This partnership is a significant milestone for both entities as it leverages Copper’s extensive network, which includes over 300 major institutions and trading platforms, to broaden institutional access to HBAR.
DeFi Integration via ClearLoop and Connect Platforms
In addition to custody and staking services, Copper will facilitate entry into the DeFi ecosystem for institutional clients through its ClearLoop settlement network and Copper Connect platform. The ClearLoop network, launched in 2020, offers seamless liquidity from exchanges like Bybit, Deribit, Kraken, and OKX. Copper Connect, a Google Chrome risk management application, will enable users to link HBAR tokens with various DeFi protocols such as Aave.
Hashgraph Algorithm and Its Significance
Hedera operates on a public, decentralized network powered by a custom algorithm known as “Hashgraph.” This technology is designed to enhance the tokenization of emerging assets, playing a crucial role in institutional adoption of blockchain. Earlier this year, Hedera even saw a BlackRock Treasury fund issued on its network by blockchain firms Archax and Ownera, signifying confidence in its underlying technology.
Strategic Importance of the Copper-Hedera Partnership
The integration of Copper’s services into the Hedera ecosystem marks a pivotal point for institutional investors. According to Shayne Higdon, Co-founder and CEO of the HBAR Foundation, “Copper’s integration allows institutional investors to conveniently and securely access the Hedera ecosystem.” This partnership signifies Copper’s commitment to providing comprehensive asset management services while leveraging its MPC technology to ensure high-security standards.
Future Prospects and Conclusion
This partnership not only enhances Hedera’s appeal to institutional investors but also positions Copper as a pivotal player in the crypto custody and DeFi space. With Google, FIS, Abrdn, and Dell already part of Hedera’s governance council, the addition of Copper solidifies Hedera’s stance as a reliable and scalable blockchain solution. As the collaboration unfolds, it’s expected to drive significant advancements in both institutional crypto adoption and DeFi integration.
Conclusion
The collaboration between Hedera and Copper is set to revolutionize the accessibility and integration of HBAR tokens for institutional investors. By combining Copper’s extensive custodian services and DeFi gateways with Hedera’s innovative Hashgraph algorithm, this partnership promises to offer unparalleled opportunities for the expansion of decentralized finance and tokenization of emerging assets. As institutional interest continues to grow, this alliance is poised to play a crucial role in shaping the future landscape of cryptocurrency investments.
