The UK’s crypto currency custodian, Copper, announced support for US dollar transfers through Signature Bank’s Signet blockchain payment platform.
According to a July 20 announcement, the integration of Signet will allow Copper’s clients to instantly pay and settle transactions in U.S. dollars and other fiat currencies.
Money On Chain says decentralized stablecoins enable huge efficiencies in payment circuits
This integration will „greatly reduce the time and other problems asset managers face in transferring traditional currencies“ between bank accounts and business environments. Bitstamp, Huobi, Kraken, OKCoin, and LMAX crypt exchanges already work with Signet and Copper.
Collaboration is part of a larger trend
Copper’s CEO, Dmitry Tokarev, believes that a crypt coin company like his that uses the blockchain service offered by a traditional bank is a sign of how significant the development of technology is over the past few years.
He said: „Over the course of 2020 […] the maturation of the crypt coin market has accelerated significantly. The industry has seen increased interest from more traditional hedge funds and asset managers opening positions in crypto as a hedge against weaker market and hyperinflation risk, while central banks are turning to digital currencies and blockchain as a potential base for the next generation of financial services.
Spain: Blockchain applied to certify wine appellation
Tokarev also said that if the current pace of development in the blockchain industry were to be maintained after the pandemic, the key would be to focus on collaboration among financial institutions. The integration of Signet by Copper, the CEO says, is an example of this trend that he hopes will be replicated by other companies in this space.
The New York State Department of Financial Services authorized Signature Bank’s blockchain platform in late 2018.
Banks use blockchain
The use of blockchain technology in the traditional banking sector has been increasing rapidly. Last week, the multinational banking giant Banco Santander and four Spanish banks successfully completed proof of concept for smart contract payments. The initiative was coordinated by the payment system manager, IberPay.
Also last week, news reports suggested that Thailand’s central bank is testing a digital version of the local fiat currency prior to its public launch.
FCA seeks to control advertising on cryptomonies
Tokarev explained that the blockchain services offered by traditional financial institutions have certain advantages over those created by technology companies:
„Established traditional institutions have proven and recognized track records, and therefore can operate within already defined and often regulated markets. It is in the interest of customers, banks and crypto infrastructure providers to collaborate on many different levels so that this emerging shared space matures in an effective and responsible manner“.