30s Summary

Copper, a crypto trading platform, has received regulatory approval from Abu Dhabi to offer secure storage options for digital money market funds. This allows Copper’s customers to use money market fund tokens as collateral in derivatives deals, providing potentially better returns in periods of high interest rates. Copper has partnered with Securitize, Franklin Templeton, Ondo, and Hashnote to tokenize Blackrock’s Institutional Digital Liquidity Fund and other real-world assets for faster trades and improved efficiency. The market for tokenized Treasuries has grown from $780 million to approximately $2.3 billion in 2022.

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Copper is rolling out secure storage options for digital versions of money market funds. This is made possible as they recently got the green light from financial authorities in Abu Dhabi. The thumbs up means Copper’s customers can now put money market fund tokens up as cover in derivatives deals.

In layman’s terms, Copper can now offer clients who trade crypto a secure place to store and trade digital versions of big-time money market funds like Blackrock’s BUIDL.

This is great news for crypto traders because if and when federal interest rates stay high for an extended period, these financial instruments could offer better returns. Copper’s global CEO, Amar Kuchinad, suggests this as these token users would earn from the collateral they pony up to others involved in the trading.

Copper has also teamed up with big players in the tokenization game – Securitize, Franklin Templeton, Ondo, and Hashnote. For the uninitiated, Securitize handles the transfer and tokenization of Blackrock’s Institutional Digital Liquidity Fund. This fund is issued on the Ethereum blockchain, represented by the BUIDL token.

Tokenized Treasuries, which are digital versions of U.S. government bonds, are leading the way when it comes to putting real-world assets on blockchains. This allows them to be traded as tokens on networks like Ethereum, Stellar, Solana, and Mantle. Essentially, it’s a race to get financial instruments like government bonds, private credit, and money market funds on these blockchains for faster settlements and better operational efficiencies.

The market for these tokenized Treasuries has grown rapidly in 2022, from $780 million in January to around $2.3 billion now.