CLST, a full-service institutional lending and borrowing platform, has partnered with institutional digital asset infrastructure provider Copper.
This alliance resulted in the joint development of Copper Pledge, “a deployable tri-party collateral management solution for digital asset markets.”
This partnership provides digital asset lenders “with much-needed tools for optimizing and de-risking their portfolios.”
Solutions like these are desperately “needed in light of recent market failures, caused in part by risky lending and leverage practices.”
Michael Guzik, Co-Founder and CEO of CLST, said:
“Institutional finance players are unlikely to bring their immense collection of assets into digital asset credit markets until collateral risk and scalability issues are resolved. CLST brings together key processes and systems that help bridge information asymmetries and embed controls in the credit lifecycle. On that note, we are thrilled to partner with leading custodian Copper on collateral management, a natural extension of our value proposition and a necessary tool for lending at scale.”
Dmitry Tokarev, CEO of Copper, said:
“Current market conditions are bringing trust to the forefront of digital asset markets. We believe very strongly in the future of digital assets, and we know that regulated intermediaries are critical to financing markets. We’re excited to see CLST join our new and reliable infrastructure which will help to re-establish trust, mature the crypto lending market, and safeguard against future turbulence and unscrupulous lending. Altogether, these improvements should give more confidence for institutions and market makers, who are essential for building the momentum of digital assets adoption.”
Loans originated on CLST markets will utilize APIs to “integrate with Copper, enabling borrowers to safely pledge collateral to lenders, protected by an English law account control agreement and security interest. Additionally, the platform offers seamless execution and post trade servicing including top-ups, margin maintenance, and even default management.”