The former British chancellor has launched a crypto firm called Copper Token, a security platform

London-based crypto trading company Copper plans to start offering tokenized securities early next year, according to reports on November 29. Under the leadership of former British Chancellor Philip Hammond, the company expects to capitalize on the interest of institutional investors.

The service is expected to be offered initially in Abu Dhabi, United Arab Emirates by its new arm, Copper Securities. The company is said to be in the process of obtaining regulatory approval from local authorities.

Copper plans to use blockchain technology to offer securities financing and other payment solutions to institutional clients in the coming months. More than 90 markets around the world will be accessible through the new platform, the company said.

Copper earlier this year acquired its securities arm to offer securities registered in the Abu Dhabi Global Market, an international financial center and free zone on Al Maria Island.

Hammond has a long-standing relationship with the region. It has been consulting the government of neighboring Saudi Arabia since 2021 after being approved by Britain's lobbying watchdog. In the year Hammond was appointed as Copper's senior advisor before assuming the company's chairmanship earlier in 2023. Back then, Hammond shared his thoughts on how blockchain technology could benefit the financial sector.

“I am of the view that the post-Brexit UK financial services sector must embrace distributed ledger technology as an integral part of its strategy to remain a major global financial hub.”

Securities tokenization involves converting financial assets, such as stocks or real estate, into digital tokens on the blockchain. Tokenization facilitates access to valuable assets and increases market liquidity by allowing fractional ownership, thereby democratizing the ownership of financial assets.

Asset tokenization remains a hot topic in 2023, and its popularity is likely to continue to grow in the future. In the UK, investment managers are encouraged to move away from traditional record-keeping systems and use blockchain technology to document investment funds. A recent report published by the Investment Association argues that the tokenization of investment funds will allow for a more efficient and transparent financial industry.

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