Hedera is gaining significant traction in the institutional crypto space with the launch of new custody and staking services for its native token, HBAR. This development is a pivotal part of Hedera’s broader strategy to enhance institutional access to its decentralized finance (DeFi) ecosystem and strengthen its position as a key player in the digital asset market.
Hedera Partnership with Copper
At the heart of this institutional push is Hedera’s recent partnership with Copper, a London-based cryptocurrency custodian known for its advanced asset management solutions. This partnership is particularly significant as Copper serves over 300 major institutions and trading platforms, offering a level of trust and security that is crucial for institutional adoption. Copper will handle the custody and staking of HBAR, providing a secure and efficient entry point for institutional investors into the Hedera ecosystem.
Some of Copper’s services include a specialized crypto wallet that leverages multi-party computation (MPC) technology, enhancing both security and efficiency in digital asset management. Through this collaboration, Copper will not only allow institutions to stake their tokens via validators of their choice, but also offer custody support for HBAR . This integration further extends to HBAR trading through Copper’s multi-exchange settlement solution, ClearLoop, broadening the scope of institutional participation in the Hedera network.
Expanding Hedera Institutional Access and DeFi Capabilities
This collaboration is set to significantly broaden institutional access to HBAR and Hedera’s DeFi ecosystem. With Copper’s infrastructure, institutional investors can now stake their HBAR tokens and interact with Hedera’s decentralized exchanges, such as SaucerSwap Labs, through Ethereum-compatible Copper Connect. This integration streamlines DeFi transactions for institutions, making it easier for them to leverage the full potential of the Hedera network.
Furthermore, this partnership builds on Hedera’s growing momentum in the asset tokenization space. Earlier this year, blockchain firms Ownera and Archax launched a BlackRock Treasury fund on the Hedera network, showcasing the platform’s capabilities in supporting sophisticated financial products. Although BlackRock was not directly involved, the initiative highlights Hedera’s potential to handle large-scale, institutional-grade projects.
Strengthening Hedera’s Position in the Institutional Market
Shayne Higdon, CEO of the HBAR Foundation, underscored the importance of this partnership, stating that it allows institutional investors to enter the Hedera ecosystem with greater ease and confidence. By leveraging Copper’s technology and security protocols, Hedera is well-positioned to accelerate its growth in the institutional crypto space.
Copper’s CEO, Dmitry Tokarev, also emphasized the value of this collaboration, noting that the integration of Copper’s full development stack with Hedera is a testament to their shared commitment to providing robust custody solutions to institutional participants in the digital asset market.
Institutional Entry Through Enhanced Staking and Custody Solutions
HBAR’s inclusion in Copper’s ClearLoop network, which connects major exchanges and over-the-counter (OTC) desks, further enhances the token’s institutional appeal. Copper’s management of HBAR custody and staking not only provides a secure platform for institutions but also positions Hedera as a leading blockchain for institutional adoption. Copper Connect, a Google Chrome extension, enables institutions to use HBAR across various DeFi applications, such as Aave, further expanding Hedera’s reach in the DeFi space.
This collaboration is a key part of Hedera’s broader efforts to strengthen its proof-of-stake network and expand its institutional footprint. The partnership with FCA-regulated platform Archax, for instance, has already facilitated the tokenization of BlackRock’s money market fund on Hedera’s blockchain. Additionally, Archax launched tokenized access to abrdn’s money market funds on both Hedera and Ethereum in 2023, further demonstrating Hedera’s growing influence in the financial sector.
Conclusion
The partnership between Hedera and Copper marks a significant milestone in the evolution of the HBAR token and the Hedera network. By offering secure, institutional-grade custody and staking services, Hedera is lowering the barriers to entry for institutions and paving the way for broader adoption of its blockchain technology. As Hedera continues to expand its ecosystem and capabilities, it is clear that the platform is well-positioned to become a dominant force in the institutional crypto market.
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