21Shares, the biggest issuer of cryptocurrency ETPs in the world, has tapped infrastructure provider Copper for its custody requirements. The latter’s infrastructural core is its ClearLoop tool, which allows institutional investors to hold on to assets right up until the moment of trade, thus enabling their clients to hold their trading capital while trades are initiated.
Upon completion, ClearLoop transfers the assets to the buyer.
ETPs track Solana and Tezos performance
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21Shares will also make use of Copper’s staking capacities to manage its holdings, the company announced today. 21Shares offers two ETPs, securities that offer exposure to the cryptocurrency market without worrying about custody or ownership of the underlying asset. Their ETPs feature staking rewards that track the performance of Solana (SOL/USD) and Tezos (XTZ/USD).
Hany Rashwan, Co-Founder and CEO of 21Shares, said:
Safeguarding our digital assets in Copper’s award-winning custody architecture provides us with the best security available on the market. With this foundation in place, we can build more secure ETPs for our clients.
Instead of a single private key, Copper’s custody creates three individual shards, which practically does away with the risk of exposure when signing transactions. This is made possible by using Multi-Party Computation (MPC) technology. 21Shares will also use the infrastructure provider’s staking capabilities to manage its digital asset holdings.
Demand for crypto ETPs is booming
ETPs are an excellent way to become exposed to cryptocurrency without the complications of direct investment. 21Shares’ products meet this burgeoning demand. Copper’s custody solution reduces the security risks to be avoided with this new class of assets.
Alex Ryvkin, Chief Product Officer of Copper, said:
We are delighted to be supporting 21Shares. They are leading the way in the development of cryptocurrency ETPs, which make up an important part of institutional engagement in this maturing asset class. It is a pleasure to be working with them and we look forward to further collaborating as they grow.
Recently, 21Shares passed $2 billion in assets managed across its product range. These include 17 crypto ETPs listed on the German Stock Exchange, the Swiss Stock Exchange, and another six exchanges in Europe.
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