London-based crypto trading and custody firm Copper plans to start offering tokenized securities in the United Arab Emirates early next year, the company announced on Nov. 29. Led by ex-British Chancellor Phillip Hammond, the company expects to capitalize on institutional investors’ demand.
Copper Securities, the company’s new arm, is set to launch the service first in Abu Dhabi, the capital of the UAE. The company is reportedly seeking regulatory approval from local authorities. Copper Securities will utilize blockchain technology and smart contracts to provide tokenized securities.
By incorporating these advanced technologies, the platform aims to revolutionize the management of traditional financial instruments such as equities.
The new entity is part of Copper’s broader suite of blockchain-based custodial and financial services. Over the next 12 months, Copper Securities intends to expand the platform’s capabilities by adding financing and payment applications.
Moreover, it will be integrated with Copper’s custodial partners, providing access to financial instruments in over 90 global markets. The platform said it seeks to address high operating costs and inefficiencies in traditional market infrastructure.
Earlier this month, Copper acquired UAE-based blockchain brokerage firm Securrency Capital Limited. This acquisition plays a vital role in Copper’s entry into the Abu Dhabi Global Market (ADGM) through its Copper Securities platform.
CEO of Copper.co, Dmitry Tokarev, said:
“With the acquisition of Securrency Capital, I’m proud to announce that Copper is launching in the UAE. This strategic move builds on our vision of transforming capital markets infrastructure by leveraging blockchain technology and tokenization.”
Further, he said this strategic expansion will establish a more efficient, transparent, and accessible financial system for institutional investors.
UAE Emerges As The Crypto’s Newest Global Hub
The new digital asset brokerage platform is one of several crypto-related businesses finding success in the UAE. In June, the leading crypto exchange, Binance, secured an Operation Minimum Viable Product (MVP) under Dubai’s Virtual Asset Regulatory Authority (VARA).
The exchange stated that the UAE’s adoption of blockchain technology has established a thriving industry, with security and innovation as fundamental components.
Most recently, Paxos, a blockchain and tokenization platform, announced it secured two in-principle approvals from FRSA. The move will enable Paxos to offer custodial and brokerage services as well as issue stablecoins.