Digital asset business Fineqia AG has partnered with crypto custodian Copper to offer custody solutions for its exchange-traded note (ETN) business, aiming to enhance the reliability and transparency of its products.
Under the new agreement, Copper will safeguard the underlying assets held in Fineqia’s ETNs, including the Fineqia FTSE Cardano Enhanced Yield ETN, which provides direct exposure to Cardano (ADA). As of Jan. 29, the product had more than $45 million in assets under management.
The Cardano ETN started trading on the Vienna Stock Exchange approximately 10 months after Fineqia AG received initial approval. According to the company’s prospectus, its ETNs are allowed to hold other cryptocurrencies such as Bitcoin (BTC), Ether (ETH), Avalanche (AVAX), and Tron (TRX).
Copper, a London-based custodian backed by British multinational bank Barclays, will play a crucial role in protecting customer assets from theft, loss, or unauthorized access, as per Fineqia’s objective.
The partnership highlights the increasing importance of custodial services for asset managers aiming to attract institutional capital to the crypto space.
The growth of institutional custody is evident, with crypto firms rushing to meet the demand in the qualified custodian market, particularly in North America.
Last year, infrastructure providers Taurus and Fireblocks expanded their custodial businesses in the region, joining established players like Kraken and Coinbase, who provide custody services for institutional clients.
In September, US crypto custodian BitGo established a regulated platform for custody services for Web3 protocols.
In December, Crypto.com also announced the launch of a US institutional custody service, driven by the election of Donald Trump and the anticipation of improved regulations in the United States. The exchange dropped its lawsuit against the Securities and Exchange Commission, expressing its intention to collaborate with the incoming administration to establish a regulatory framework for the industry.
Meanwhile, Coinbase has been urging regulators to clarify whether financial institutions are permitted to serve crypto businesses. The exchange sought confirmation from the Federal Deposit Insurance Corporation on whether chartered banks can provide crypto custody and execution services, according to Bloomberg.