Crypto Custodian Copper Raised $8 Million for Expansion

A new founding round will help London-based digital asset startup Copper mee the burgeoning demand for cryptocurrency custody services.

Tech business publication BusinessCloud reported on Feb. 17 that Copper has raised $8 million in a Series A round which included venture capital firms like MMC Ventures and LocalGlobe. With such capital, Copper founder and CEO Dmitry Tokarev have expressed his intention of enhancing their offerings in North America and Asia:

“Copper was always designed to be a global offering. This venture funding round is a real vote of confidence from investors. Their support will allow us to accelerate our scale up, hiring teams in key regions and introducing new products and services to better meet their needs.”

Launched in 2018, Copper provides its clients access to crypto trading without taking digital assets out of its custody. This investment will allow Copper to hire business development teams for these markets in addition to specialists handling local crypto regulations. The company had planned on establishing new offices in Hong Kong, but such efforts have been curtailed with the recent outbreak of the coronavirus.

The future of crypto custody providers

Cryptocurrencies have always faced challenges when it comes to reducing risk and making themselves regulatory compliant for traditional investors. Providing custody for Bitcoin (BTC) and others is becoming increasingly more complex due to the nature of crypto: whoever has control of the asset, owns the asset.

While users typically had to store their own BTC private keys when the cryptocurrency was launched, now there are more solutions like cypherpunk storage and crypto banks like Coinbase.

At present, crypto custody solutions range from self-custody, third-party custody and inter-exchange custody.

Coinbase remains the clear leader among crypto custody providers, but the industry is still evolving in contrast to traditional finance. Custody of cryptocurrency, as well as insurance against theft and hacking, need to be addressed to attract more additional investors. Canada-based crypto custodian Knøx secured $6.2 million in seed capital on Sept. 24. Copper’s accomplishment is just the latest example of investors seeing the potential of these startups.