Crypto Custodian Copper Explores $500M Sale With Cantor Fitzgerald Support

• After 2023, Copper decided to put all of its energy on ClearLoop, an enterprise custody business that serves a large number of institutional clients.
• An initial public offering (IPO) was reportedly being considered by Copper earlier this year.

Based on information from two sources familiar with the situation, cryptocurrency custody business Copper has been actively seeking a buyer for its platform, with an asking price of about $500 million. According to the sources, Cantor Fitzgerald, an investment firm based on Wall Street, has been enlisted to assist with the sale of Copper.

One of Copper’s most valuable elements is its ClearLoop settlement system. It allows users to conduct delivery versus payment (DvP) transactions without putting assets onchain, removing settlement risk altogether.

After 2023, Copper decided to put all of its energy on ClearLoop, an enterprise custody business that serves a large number of institutional clients. More than fifty billion dollars in notional trading activity occurs each month, and the business claims over a thousand active counterparties on its website.

Consolidation Across the Digital Asset Sector

An initial public offering (IPO) was reportedly being considered by Copper earlier this year. If successful, it would follow in the footsteps of Bitgo, a cryptocurrency custodian with whom Copper had a collaboration on the ClearLoop app. The crypto IPO market has been in a holding pattern this year due to bitcoin trading below $80,000 and artificial intelligence consuming the majority of the funds.

In the meantime, there has been a flurry of activity in the cryptocurrency sector this year in terms of dealmaking. Traditional, fintech, and crypto-native enterprises are all seeking to enhance their digital asset capabilities via acquisitions.

The stablecoin infrastructure company BVNK, located in the United Kingdom, is all set to be acquired by Mastercard for up to $1.8 billion earlier this year. Tokenization infrastructure and transfer agency services were the goals of a $4.2 billion acquisition by Bullish, owner of CoinDesk, and the derivatives platform Bitnomial, whose parent firm is Kraken, agreed to be acquired by Payward.

Last week, Standard Chartered, a bank based in London, announced that it would purchase any outstanding shares in Zodia Custody, a subsidiary that deals in crypto custodian services. According to reports, the bank’s venture capital section allegedly acquired a stake in cryptocurrency trading business GSR at a value of over $1 billion only weeks before to the transaction.

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