State Street severs ties with crypto custodian Copper

crypto, cryptocurrency, bitcoinGlobal custodian State Street has decided to end its association with UK-based Copper due to difficulties faced by the crypto custodian.

Copper announced that it would be closing its enterprise infrastructure division and cutting staff due to “the present challenging conditions in the digital assets space, an uncertain US regulatory environment and a desire to focus on strategic offerings”.

State Street and Copper entered into an alliance last March to jointly develop a crypto custody service. However, the two companies have mutually decided to end their licensing agreement and would “continue to build on their digital strategies within their own respective product development approaches”, according to a State Street statement.

Copper further explained the decision to close its enterprise infrastructure business which is designed to connect banks and hedge funds with digital assets and to focus on its ClearLoop real-time settlement service.

“Copper remains on course to be the best supplier of digital asset custody and prime services that meet the needs of institutional investors,” said CEO Dmitry Tokarev. “But now marks the time to re-evaluate our business strategy and redouble our efforts on further growing the areas where we can build maximum success to transform existing financial infrastructure.”

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