Bringing Traditional Finance Standards to Crypto Custody: The BitGo-Copper Partnership
Institutional crypto custody has been revolutionized through a partnership between BitGo and Copper.
Simon Morgan, Copper's Global Head of Revenue, emphasized the need for crypto custody to mirror the high standards of traditional finance. In a recent video, he discussed how partnering with BitGo enables a secure and scalable infrastructure that brings digital asset custody closer to the reliability expected in conventional finance. This collaboration blends Copper's renowned risk management expertise with BitGo's trusted custody solutions, raising the bar for digital asset security.
Crypto Custody: Embracing TradFi Norms
Institutional investment in digital assets often falters due to complex regulatory issues and lingering concerns about security. To address these hurdles, Morgan highlighted that BitGo's partnership with Copper is bridging the gap between traditional and crypto markets. Combining BitGo's robust custody methods with Copper's strong risk controls gives institutional players a needed sense of security.
Risk Mitigation in the Crypto Realm
A cornerstone of the new infrastructure is sophisticated credit risk management. Morgan explained that by integrating advanced credit risk mitigation into their system, the collaboration aims to more effectively handle high-value transactions and manage crypto portfolios responsibly. At the heart of Copper's technology is Multi-Party Computation (MPC), which ensures secure storage and expedites trading.
A Mindset Shift: Viewing Crypto as TradFi Assets
Morgan urged for a change in perspective when it comes to crypto. He believes that digital assets should be treated as other financial assets, deserving the same level of care and scrutiny. The BitGo-Copper collaboration is a step in that direction, offering a solution that supports smooth integration without compromising security or efficiency.
The Future of Crypto Growth: A Symbiotic Relationship
This partnership signifies a maturing and forward-thinking approach to digital asset custody. Institutions now have access to a safer, more structured way to manage digital assets, which can help shape industry benchmarks as more organizations consider adding crypto to their portfolios.
Incorporating stringent financial regulations, advanced credit risk mitigation, and rock-solid security controls, the BitGo-Copper partnership is paving the way for institutional-grade crypto custody solutions. It's not about reinventing the wheel; it's about applying proven TradFi principles to the world of crypto.
Joint Objectives of the Partnership:
To establish secure, compliant, and robust custody solutions for digital assets
- Enhanced Security and Compliance: By combining BitGo's sturdy custody infrastructure with Copper's advanced technology, the partnership aims to offer TradFi-grade digital asset custody solutions that comply with rigorous financial regulations, ensuring confidence among institutional investors.*
- Credit Risk Mitigation: The collaboration, with its use of advanced credit risk management technology, aims to minimize potential risks associated with digital asset custody, ultimately increasing the stability and reliability of custody solutions.*
Impact on Institutional Adoption:
- Increased Trust: By providing secure and compliant custody solutions, the partnership bolsters trust among institutional investors, who require robust security measures and compliance before venturing into digital assets.*
- Broadened Market Access: The partnership allows for a smooth integration of digital assets into conventional investment strategies, enabling more institutions to explore digital assets without the traditional barriers of regulatory hurdles.*
- Market Growth: By blurring the lines between traditional finance and crypto, the BitGo-Copper partnership drives the long-term growth of the digital asset sector, as more traditional financial institutions participate.*
Overall, the BitGo-Copper partnership contributes significantly to enhancing institutional adoption of cryptocurrencies by offering secure, compliant, and robust custody solutions that cater to the rigorous standards of traditional finance. [1][2][3][4]
- Morgan mentioned that the partnership between BitGo and Copper is crucial for bridging the gap between traditional and crypto markets, thus giving institutional players a needed sense of security in their digital asset investments.
- The new infrastructure developed by the collaboration includes advanced credit risk mitigation, with the aim of effectively handling high-value transactions and responsibly managing crypto portfolios.
- Morgan emphasized the need to view digital assets as other financial assets, deserving the same level of care and scrutiny, and the BitGo-Copper collaboration offers a solution that supports this mindset, with a focus on smooth integration without compromising security or efficiency.
- With stringent financial regulations, advanced credit risk mitigation, and rock-solid security controls, the BitGo-Copper partnership is paving the way for institutional-grade crypto custody solutions, helping shape industry benchmarks in the long term.
- By providing secure and compliant digital asset custody solutions, the partnership bolsters trust among institutional investors, allowing for a smoother integration of digital assets into conventional investment strategies, and ultimately driving the growth of the digital asset sector as more traditional financial institutions participate.
