UK based cryptocurrency custody startup Copper has announced support for the United States dollar through the blockchain payment platform of Signature Bank.
On July 20. an announcement stated that Signature Bank’s Signet integration will now allow customers of Copper’s to instantly pay and settle in US dollars and other supported fiat currencies.
Delighted to announce the integration of Signature Bank services into our platform! The integration marks a pivotal step in our mission to enhance client experience & ensure that our platform remains functional & valuable https://t.co/isv1iE8CbQ pic.twitter.com/TbqPQkU9yr — Copper (@CopperHQ) July 17, 2020
The integration will “vastly reduce the time and other issues that asset managers face in transferring traditional currencies” between bank accounts and trading environments.
Popular crypto exchanges such as Bitstamp, Huobi, Kraken, OKCoin and LMAX are already integrated with both Signet and Copper.
Copper CEO Dmitry Tokarev believes that a crypto firm using blockchain services offered by a traditional bank is a sign of how the technology has significantly developed over the last few years.
He said:
“Over the course of 2020 […] the maturation of the crypto market has significantly accelerated. The industry has seen increased interest from more traditional hedge funds and asset managers taking crypto positions as a hedge against the weaker market and the risk of hyperinflation, while central banks are turning to digital currencies and blockchain as a potential foundation for the next generation of financial services.”
Tokarev added that if the current pace of development in blockchain industry is maintained even after the pandemic, a focus on collaboration between financial institutions is the key to it.
Tokarev further claims that Copper’s integration with Signature Bank’s Signet is a perfect example of this. He hopes that will gets replicated by other companies as well.
At the end of 2018, New York State’s Department of Financial Services authorized Signature Bank’s blockchain platform.
The use of blockchain technology with the traditional banking sector has been increasing apace.
Recently, five topmost Spanish banks successfully finalized a proof-of-concept for payments using smart contracts coordinated by the manager of the payment system- IberPay.
Meanwhile, Thailand’s central bank is currently testing a digital version of the local fiat currency before a public launch.
Tokarev explains that blockchain services offered by traditional financial institutions have advantages over those created by technology firms:
“Established traditional institutions have proven and recognised track records, and can therefore operate within defined and often regulated markets. It is in the interests of clients, banks and crypto asset infrastructure providers alike to be collaborating on many different levels for this emerging shared space to mature effectively and responsibly.”
Source: Cointelegraph | Image: Unsplash