The U.S. bank and the crypto firm Copper announce the end of their agreement license agreement. State Street continues however its projects of tokenization of securities.
By getting closer to an international banking player, the British company specializing in crypto Copper had scored a big hit. A success attributed to its chairman Philip Hammond, the former chancellor of the British Exchequer.
This partnership, however, has just come to an end. The announcement was made official by State StreetIn a turbulent context for the banking and crypto ecosystem, but also for Copper.
Copper reviews its strategic priorities
On Thursday, March 16, the crypto institutional custody specialist reported a strategic update, a ” strategic realignment ” in the jargon.
The board of directors reviewed business priorities and the current situation and made a decision to streamline the business in line with its strategic objectives,” Copper wrote in a statement.
Operationally, the crypto player is closing its enterprise division to focus on activities related to the custody and settlement via its solution ClearLoop. Copper claims “steady growth” and “expects further acceleration”.
Does this strategic shift explain the break with State Street? The bank doesn’t say.
State Street and Copper have mutually decided to end their licensing agreement and both companies will continue to develop their digital strategies within their own product development approaches,” a spokesperson responds.
Tokenization still a priority for State Street
Like other banking players, State Street also intends to continue its efforts in tokenization, its priority for 2023. The Boston-based financial institution aims to have a “multi-faceted solution for tokenized securities and native tokens.”
These developments, however, come in a complex context.
The regulatory environment for digital assets has continued to evolve, as have the requirements for managing this asset class,” State Street says.
The willingness of authorities, particularly among G20 member states, to tighten regulations on crypto-assets could have an impact on the advancement of tokenization in finance.
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