Copper.co, a digital asset custody provider, has announced the launch of its agency lending platform.
In a Feb. 11 announcement on Feb. 11, Copper said the blockchain-based platform, which will also integrate traditional finance, aims to transform the digital asset lending market.
The platform is designed to address challenges that have contributed to major collapses across DeFi and TradFi. Copper’s financing solution tackles issues such as limited visibility, inflexibility, and slow settlement times.
Users will also benefit from increased efficiency and transparency—key features of blockchain and crucial metrics for lending models. Bridging the gap between on-chain efficiency and real-world risk management not only enhances capital efficiency but also reduces contagion risks.
“We aim to offer a best-in-class agency lending platform for our institutional clients, while demonstrating blockchain’s potential to offer transparent, swift, and flexible financing that protects against overleveraged losses before they spread. Our new platform is designed to transform lending by combining the transparency and speed of blockchain-based finance with the flexible terms of traditional finance,” Amar Kuchinad, global chief executive officer of Copper.co, said.
The rollout of the agency lending platform includes features such as fast loan execution, overcollateralized loans that combine yield generation with secure recovery, and real-time visibility. Customers can access these functionalities through an on-platform dashboard.
A customized risk framework will ensure position safety in the event of a loan-to-value breach. Meanwhile, direct lending and the ring-fencing of loaned assets using Copper’s off-exchange settlement platform, ClearLoop, will help clients mitigate ecosystem threats and exchange bankruptcy risks.
Copper recently announced that it will provide secure custody solutions for CSE-listed digital asset provider Fineqia. The move is part of its plans for global expansion.
The partnership makes Copper the custody provider for Fineqia’s exchange-traded note business. Collaborating with Copper enables Fineqia to offer reliable and transparent ETNs and other investment products.
