Copper, an enabler of digital asset custody, collateral management, and prime services, announces the launch of its new tri-party collateral management solution for over-the-counter (OTC) derivatives, initially in partnership with DV Chain International’s structured products desk, Centaur Markets.
This solution leverages Copper’s expertise in custody as well as collateral workflows in order to support the expansion of clients’ OTC derivatives trading through Centaur Markets.
Copper has established itself as a partner to the largest derivatives liquidity providers, delivering solutions that improve “capital efficiency and operational performance.”
Since the start of 2024, ClearLoop is processing a monthly average of 20 million trades with a “notional value of $100bn.”
Building on the “success” of ClearLoop, this tri-party solution enables counterparties to secure collateral and liquidity providers, such “as DV Chain International, to hedge their positions seamlessly, all without moving assets outside the Copper ecosystem.”
Key Features and Benefits of Copper’s Tri-Party Collateral Management Solution:
- Security: Safeguard collateral within segregated Collateral Vaults, secured by Copper’s institutional-grade MPC custody technology.
- Visibility: Real-time transparency into Collateral Vaults for all participants, ensuring enhanced monitoring and risk management.
- Efficiency: Copper’s 24/7 Middle Office team approves and counter-signs collateral movements with a rapid 15-minute SLA once relevant permissions are in place.
- Token Support: Manage collateral using over 550 digital assets to meet a wide variety of trading and liquidity needs.
As noted in the update, tri-party collateral management solution services are available in “approved jurisdictions, subject to local regulation.”
DV Chain is an industry participant focused on “providing liquidity services in the dynamic world of cryptocurrencies.”
Their expertise stems from an understanding of the digital asset market.
Since being founded in 2018, Copper has been building the “standard” for institutional digital asset infrastructure with a “focus on custody and collateral management.”
Underpinned by innovative tech, Copper has built a suite of products and services required to “safely custody and trade digital assets.”
At the core of Copper’s infrastructure is ClearLoop, which enables clients to manage collateral and settle trades across exchanges, while “mitigating counterparty risk and increasing capital efficiency.”
