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The banking sector has recorded significant losses, with three regional banks in the United States closing their services.
State Street Corporation (NYSE: STT), a global banking solution that provides financial services to institutional investors, has cut ties with Copper, a London-based cryptocurrency custody firm. Reportedly, State Street and Copper have mutually ended their licensing agreement to focus on individual projects in the digital ecosystem. According to Copper in a recent announcement, the present challenging conditions in the digital assets space, increasing uncertainty in the United States crypto regulatory environment, and the desire to focus on strategic offerings have led to the decision.
“State Street and Copper have mutually decided to end their licensing agreement, and both companies will continue to build on their digital strategies within their own respective product development approaches,” a State Street spokesman said.
Reportedly, State Street will continue to work on a multi-faceted solution for both tokenized securities as well as native tokens. Additionally, the global banking solution noted that the regulatory environment for digital assets has continued to evolve, thus changing the requirements for servicing the investments.
As a result, Copper has indicated that it will focus on areas in which it has shown great potential, including ClearLoop.
“Copper remains on course to be the best supplier of digital asset custody and prime services that meet the needs of institutional investors. But now marks the time to re-evaluate our business strategy and redouble our efforts on further growing the areas where we can build maximum success to transform existing financial infrastructure,” Dmitry Tokarev, Chief Executive Officer Copper, noted.
Moreover, Copper’s ClearLoop has implemented robust security measures to ensure institutional digital asset storage standards.
Recent market incidents have underscored the importance of robust security measures for digital assets. #ClearLoop addresses this challenge with the innovative trust and collateral structure, setting the institutional standard of digital asset security: https://t.co/15z7kpCBUx pic.twitter.com/eDBXhvXSDA
— Copper.co (@CopperHQ) March 16, 2023
Bigger Picture of Copper and State Street Corp’s Mutual End of Partnership
The banking sector and the cryptocurrency industry have undertaken different financial directions, and the latter has been consuming the former’s market. Already, the banking sector has recorded significant losses, with three regional banks in the United States closing their services. The week’s highlight was Credit Suisse, which is about to borrow $53.7 billion from the Swiss National Bank to bolster its banking activities after its largest investor bailed out.
Additionally, big banks in the United States, including Bank of America, Wells Fargo, Citigroup, and JPMorgan, have united to save struggling fellow First Republic Bank (NYSE: FRC). Notably, over $30 billion has been pledged by banks in the United States to rescue struggling First Republic Bank.
Meanwhile, the cryptocurrency industry continues to thrive, with Bitcoin trading above $25k. According to our latest crypto market data, Bitcoin price is up approximately 6.3 percent in the past 24 hours to trade around $25.9k. As a result, crypto custody firm Copper is assured of more institutional investors seeking digital asset exposure before the next bull market.