State Street Drops Crypto Custody Firm Copper Like A Hot Potato

Global custody bank State Street has ended its licensing agreement with Copper, a cryptocurrency custody firm that recently announced the closure of its enterprise infrastructure division.

A State Street spokesperson confirmed the end of their working relationship, stating "both companies will continue to build on their digital strategies within their own respective product development approaches," according to Coindesk.

State Street will now focus on developing a "multi-faceted solution for both tokenized securities as well as native tokens," as the regulatory environment for digital assets continues to evolve.

Also Read: $1B Crypto Deal Gets Go-Ahead Despite US Government's Objections

The cryptocurrency industry recently faced uncertainty with several banking partners withdrawing or collapsing their relationships with cryptocurrency firms.

Copper's decision to shut down its enterprise infrastructure business to focus on its Clear Loop custody and settlement business has added to this trend.

Copper's partnership with State Street was considered a significant accomplishment for the London-based crypto firm, whose chairman is former U.K. Chancellor of the Exchequer, Philip Hammond.

Read Next: Bitcoin Outflow Increases: 2 Experts Weigh In On Recent Changes, Is The Data 'Insignificant?