Sui, the two-year-old layer-1 blockchain platform, is enhancing its custody capacities through a strategic partnership with Copper, a digital assets financial services provider. This collaboration aims to bolster Sui’s infrastructure and attract more institutional finance by offering enterprise-level custodial solutions.
New Custody Features and Real-world Assets
The partnership will enable Sui to roll out new custody features for staking and other decentralized finance (DeFi) functions. These enhancements will support clients issuing stablecoins and real-world assets. Copper’s custody support is already available for Sui-native tokens like the Ondo USD Yield (USDY) stablecoin.
Greg Siourounis, managing director of the Sui Foundation, emphasized the importance of this development, stating,
“Copper’s presence on Sui immediately improves its infrastructure by incorporating enterprise-level custodial solutions, which is an important prerequisite to onboarding large institutions. As TradFi continues to lean into crypto, Sui is now firmly in the conversation as a top destination to store and deploy digital assets.”
Sui’s Growing Ecosystem
Developed by United States-based Mysten Labs and launched in March 2022, Sui is a layer-1 blockchain and smart contracts platform founded by former Meta executives. In April, Sui partnered with BytePlus, an arm of TikTok’s parent company ByteDance, to enhance its scalability and data processing capabilities. Additionally, Sui has been home to the FDUSD stablecoin offered by Hong Kong-based First Digital Group.
Source: Sui
Sui’s token (SUI) is managed by several custodial services, including BitGo, Anchorage, and Coinbase Prime. This partnership with Copper further solidifies Sui’s position in the blockchain and digital assets space.
Copper’s Role and Market Impact
Copper, a UK-based service, utilizes its ClearLoop technology to settle trades and manage collateral. The company has expanded its presence in the traditional finance market, facilitated by investments from billionaire Alan Howard, and co-founder of asset manager Brevan Howard. Copper Securities, launched in November, offers tokenized securities in the Abu Dhabi Global Market.
Tokenized real-world assets, with a market cap of $8 billion, include private equity, real estate, government securities, commodities, and other financial obligations. Ondo, the third-largest issuer of tokenized assets, has achieved high returns, largely due to its U.S. Government Bond Fund, a tokenized derivative of BlackRock’s U.S.
