Copper, a cryptocurrency custody and trading firm, is set to offer a brokerage service for digital securities in Abu Dhabi early next year. The new entity, Copper Securities, will provide execution and custody services and is currently working with the Financial Services Regulatory Authority (FSRA) in Abu Dhabi to secure the necessary approvals by early 2024.

The move was made possible by Copper’s recent acquisition of Securrency Capital, an Abu Dhabi-based division of the Securrency tokenization platform that was not included in the acquisition of Securrency Inc. by the Depository Trust & Clearing Corp. (DTCC) in October. Copper’s CEO, Dmitry Tokarev, referred to Abu Dhabi as “the capital of capital,” citing the region’s accumulation of institutional assets.

The United Arab Emirates (UAE) has become an increasingly attractive location for crypto businesses due to its greater regulatory clarity for digital assets compared to many other jurisdictions. Copper Securities plans to target institutional clients, including hedge funds and sovereign wealth funds, as Abu Dhabi is more focused on asset management.

Copper Securities aims to offer automated processing of corporate actions, settlements, top-ups, and rebalances. The firm also plans to introduce securities financing, lending, and payments applications in the coming year. The move towards tokenizing traditional financial assets has led to a convergence between traditional financial plumbing and blockchain technology, with banks and asset managers leading the charge.

In summary, Copper’s entry into the Abu Dhabi market represents a significant move towards greater institutional adoption of digital securities. The company’s acquisition of Securrency Capital has enabled it to offer a brokerage service in the region, which is becoming increasingly attractive to crypto businesses due to its regulatory clarity. Copper Securities aims to offer a range of automated services to institutional clients, with plans to introduce additional applications in the future.