Over the past few months we have seen a great transition in the way people conduct business as well as day to day transactions. Although most of the changes were mandated by the sudden pandemic but that has also led to a substantial shift in the user behavior. This evident shift was also influenced by the downfall in employment numbers and the scope for impulsive spending which eventually increased the investment caution and the average number of online transactions per day. While the world transitioned through multiple changes at once, digital technology has also strengthened its framework to support these changes.
New innovations like blockchain and cryptocurrency have transformed the business, finance and global trade scenarios. One such niche business-cum-technological concept is called Custodian which is basically an online financial institution that stores and protects consumer assets. It may contain securities, stocks or other financial instruments which allow both individuals as well as enterprises to lodge their expensive assets in their safekeep. It prevents loss through theft and leakage by maintaining strict security measures.
One of the most well known and regarded Custodians in the fintech market currently is Copper Technologies which provide the functionality to use institutional custodians for various firms. Institutional custodians are nothing but common platforms for managing various assets that’d be incumbent from different financial institutions. From a customer’s perspective, handling multiple portfolios would create a lot of administrative trouble and leave a wide space for errors as well. Hence, various financial institutions have started offering the feature of common portfolio management through a single platform. Needless to say, such a platform would require an extremely secure gateway and environment for the transactional processing and asset transmission with multiple exchanges, wallets, vaults and institutions etc. Copper Walled Garden provides an infrastructure that prevents malicious attacks through multiple security levels and gateway checks and mitigates the risk exposure of the financial transactions.
Just like a working application and PC, the other half of antivirus’s security measures. Similarly, giving wings to the strength of security and technology offered by Copper, XinFin Fintech has partnered with Copper.co for Institutional Custody Solution with the support for XDC across its institutional hot and cold wallet solutions. Xinfin’s XDC Network is an open-source hybrid blockchain for enterprise and business specific global trade and finance use cases. The company has their own global trading and finance platform called Tradefinex.org which is a P2P network application for firms supporting trade finance in order to distribute trade assets to the rising category of alternative investors. With their strong network and a host of DAPP ecosystem, Xinfin blockchain aims to innovate the trade finance market. Their current master stroke includes the deal with Copper.co which now supports their main network, coin asset distribution by providing institutional custody features for their Mainnet and TradeFinex solution. This makes them a superior financial trading platform for both corporates and crypto hedge fund customers and provides insurance of the safeguarding cryptocurrency assets against current market risks.
Now let’s talk about how XDC has utilized the power of Copper to enable their powerful systems. While the management is focused on increasing their institutional applications, the custodian feature also comes in with the user based KYC and AML checks that aligns the system to regulatory requirements and eases the user experience. In case of a joint account or multi-liability business account, it allows for multi-signing the transactions so that multiple people can sign transactions for the processing. This gives rise to multiple business use cases where people doing business from different locations could converge and secure their dealings and buyers/sellers can ensure the correctness of all of their transactional requirements.The company has further secured the system by insuring the assets which can be availed by paying an extra fee. On the other hand, easy liquidity is allowed through OTC desks for XDC trading to convert xdc with USD
Both users and enterprises can purchase XDC using USD from OTC desks and store them as assets within the copper.co’s institutional custody. Copper manages infrastructure that allows organisations to procure, retain, and exchange virtual currencies or financial assets without defying any global investor or regulatory requirements. The transactions are secured from hackers, internal thefts and prevent loss of assets due to bad trust. data leakage or corrupt systems.