Crypto custody firm Copper is exploring a sale, seeking a buyer willing to pay approximately $500 million, according to sources. Wall Street investment bank Cantor Fitzgerald has been appointed to assist with the sale. Copper's key asset is the ClearLoop settlement system, which enables delivery versus payment (DvP) from within custody without bringing assets onchain, eliminating settlement risk. The firm closed its enterprise custody business in 2023 to focus on ClearLoop, which now boasts over 1,000 active counterparties and over $50 billion in monthly notional trading volume. Copper was previously considering an IPO earlier this year, but the crypto IPO market has been subdued amid bitcoin trading below $80,000 and AI absorbing capital. However, deal-making in the crypto sector remains active, with recent acquisitions including Mastercard's purchase of BVNK for up to $1.8 billion, Kraken's parent company acquiring Bitnomial, Bullish buying Equiniti for $4.2 billion, and Standard Chartered acquiring full ownership of Zodia Custody.

Key facts

• Copper seeks $500M sale with Cantor Fitzgerald as advisor.
• ClearLoop settlement system is Copper's key asset, eliminating settlement risk.
• Firm closed enterprise custody in 2023 to focus on ClearLoop.
• ClearLoop has 1,000+ counterparties and $50B+ monthly notional volume.
• Crypto IPO market sluggish; M&A active with Mastercard, Kraken deals.

KeyAudit data perspective