Copper Gains Approval to Offer Custody Services for Tokenized Money Market Funds in Abu Dhabi

Copper is stepping up by offering custody services for tokenized money market funds. Recently, they received the green light from the Financial Services Regulatory Authority (FSRA) in Abu Dhabi.

This approval means that Copper's clients can now use money market fund tokens as collateral for derivatives trading. It's a significant move for the company.

In a press release, Copper shared that they can securely store and trade tokenized money market funds, including Blackrock's BUIDL. This opens up new opportunities for their clients.

On top of that, Copper has formed partnerships with key players in the tokenization space. These include Securitize, Franklin Templeton, Ondo, and Hashnote. Securitize acts as the transfer agent and tokenization platform for Blackrock's USD Institutional Digital Liquidity Fund, which is issued on the Ethereum blockchain and represented by the BUIDL token.

Tokenized Treasuries are gaining traction too. These are digital versions of U.S. government bonds. They allow trading as tokens on various blockchains like Ethereum, Stellar, Solana, and Mantle. Both digital asset firms and traditional finance leaders are racing to bring financial instruments like government bonds and money market funds onto blockchain. The goal? To enhance efficiency and speed up settlements.

Amar Kuchinad, Copper's global CEO, mentioned that if the Federal Reserve keeps interest rates high for a while, these tokenized money market funds could boost returns for those in the derivatives market. Participants would earn income from the collateral they provide to counterparties.

According to rwa.xyz, the tokenized Treasury market has almost tripled this year. It grew from $780 million in January to around $2.3 billion. Kuchinad, who took over as global CEO last month, previously served as an advisor to the Securities and Exchange Commission (SEC).