"If the Fed does end up keeping rates higher for longer, these tokenized money market funds could enhance returns for derivative market participants, who would be earning income from the collateral they post to counterparties," Amar Kuchinad, Copper's global CEO, said in emailed comments.
Copper clients can also use tokenized money market funds as collateral in derivatives trades, after the crypto custodian received regulatory approvals from the Financial Services Regulatory Authority (FSRA) in Abu Dhabi, the London-based company said.
The approval means the company's clients can now use money market fund tokens as collateral in derivatives trades.
Digital asset firms and TradFi heavyweights have been racing to put financial instruments such as government bonds, private credit and money market funds on blockchain rails, to achieve operational efficiencies and faster settlements.
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