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Copper Now Enables Funds to Create Complex Crypto-Backed Securities
The service allows institutional investors to securitize a range of crypto-based products, from token trackers to complex trading strategies.
By Paddy Baker
Updated Sep 14, 2021, 9:01 a.m. Published Jul 8, 2020, 2:42 p.m.

Copper has launched a service that allows institutional investors to create securitized tokens for a range of crypto-based products, from token trackers to complex trading strategies.
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- Five funds are already using the "Catalyst" framework to create complex digital asset-based products that can be traded just like a regular stock, the cryptocurrency infrastructure provider said Wednesday.
- Catalyst allows institutional investors to create and trade securitized versions of sophisticated strategies without trading or holding the digital assets themselves.
- The underlying assets are custodied by Copper.
- The funds already on board are using Catalyst to create securitized tokens based around arbitrage, yield and volatility trading strategies, Copper CEO Dmitry Tokarev told CoinDesk.
- Another 10 are in the pipeline to use the service, Tokarev said.
- Each security is an actively managed certificate (AMC), a highly flexible instrument akin to an exchange-traded fund that can be set up and issued in weeks.
- The securities are given an official Swiss-registered International Securities Identification Number (ISIN).
- They will be tradable on regulated European stock exchanges and subject to existing securities regulation.
- Swissquote released its own volatility-tempered bitcoin AMC in November 2017, which is currently tradable on the Swiss SIX Exchange.
- However, Copper's Catalyst is the first offering allowing funds to create and issue crypto-based AMCs, according to Tokarev.
- London-based Copper offers infrastructure services for institutions; it released a trading tool to minimize credit risk exposure earlier this year.
See also: London-Based Crypto Custodian Copper Raises $8M for Expansion Overseas
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