Capital markets News Technology Media Telecoms

State Street digital asset custody partner Copper gets Swiss regulatory approval

custody digital assets cryptocurrency

Today cryptocurrency custody technology startup Copper announced it has regulatory approval in Switzerland. It has been accepted as a member of the Swiss Financial Services Standard Association (VQF). It’s a self-regulatory organization required by the Swiss regulator FINMA to supervise its intermediary members for compliance with anti-money laundering.

In March, Copper announced State Street, the world’s second largest conventional custodian, had selected its technology to develop a custody solution. 

But regulatory approval in Copper’s UK home base has been slow going. It’s on a list of four firms with temporary registration from the UK’s Financial Conduct Authority (FCA). The FCA delayed the registration of many crypto-asset firms for a long time but eventually caught up, issuing 18 approvals between October and December 2021 and five since. Most applications were rejected or withdrawn, with a total of 34 firms now authorized.

In May last year, Copper raised a $50 million Series B led by Dawn Capital and Tiger Global. A month later, it secured a $25 million extension round led by Alan Howard, co-founder of Brevan Howard and crypto firm Elwood Technologies. It also entered into a strategic partnership with Elwood.

Including its Series A, Copper has raised a total of $85 million. While that’s a significant amount of funding, it’s much less than some major competitors. Bloomberg reported in November that Copper was exploring a Series C, but there’s been no announcement, and the lack of FCA clearance will matter.

Around the same time as Copper’s Series B, BNY Mellon’s partner Fireblocks raised a $310 million Series D. It followed that up this year with a $400 million Series E, meaning cumulative funds raised surpassed $1 billion. KKR led a $350 million investment in Anchorage Digital in December, bringing its total funding to $487 million.

Image Copyright: kanawatth / 123rf