Singapore-based blockchain firm XinFin has signed Copper.co, a crypto portfolio manager and prime broker, to support its digital asset token XDCe.
XinFin develops a hybrid blockchain protocol that helps enterprises with real-world use cases and also offers peer-to-peer trade and finance platform known as TradeFinex.
The company taps Copper’s bespoke prime brokerage for digital assets, which makes it possible to trade between exchanges but withdraw only to a secure offline custodian. The infrastructure reduces the counterparty risks allowing investment managers to trade through a dedicated and whitelisted custodian.
To move digital assets out of a Copper wallet, the system requires multiple private key holders to approve transactions, which removes the inherent risk associated with keys creation and management. The risks have been demonstrated in the recent past as many crypto wallets and exchanges have been hacked, and customer data has been compromised.
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XinFin validates transactions through its own Ethereum-compatible XDC cryptocurrency token and its XDC01 protocol. The public network allows users to communicate and share basic data across the entire ecosystem. It also allows participants to create their own private networks, where they can exchange sensitive financial data.
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XDC protocol supports its own cryptocurrency across the XinFin ecosystem and offers payment domain gateways, institutional financial applications, trading applications, supply chain solutions, and wallet services.
Commenting on the news, Ritesh Kakkad, Co-founder at XinFin and TradeFinex, said: “In 2020, appropriate custody services are the most critical element for institutional adoption of digital assets. With Copper’s custodial services now available for XDCe, regulated institutions like banks, crypto hedge funds, and financial entities will have a secure solution to store their digitised XDCe holdings. Copper is also planning to provide support for XinFin’s primary chain coin XDC in the near future.”
Dmitry Tokarev, CEO of copper.co, added: “Institutions need a lot more than an app with pretty charts. They need proper security, which includes technology, insurance, people, and business processes – as well as exceptional client service. We’re proud to have earned XinFin’s trust and their business.”
Copper’s Walled Garden solution appeals particularly to investors who require exposure to the digital asset without necessarily wanting to be fully exposed to the risks associated, such as hacking attacks or management of access keys. Earlier this month, the product was deployed by London-based hedge fund manager Nickel Asset Management to launch its second cryptocurrency fund. Fidelity Digital Assets, the cryptocurrency arm of Boston-based Fidelity Investments, is offering custody services for the new fund.