London-based crypto custodian Copper has raised $50 million in a Series B round led by Dawn Capital and Target Global. Illuminate Financial Management, the enterprise fintech focused venture capital firm, also participated.
The startup will use the money to grow internationally, with plans to open two new regional offices in the U.S. and Asia. It aims to triple headcount by the end of 2021 after increasing assets under custody more than 40 times since the third quarter of last year.
Copper now claims to support more than 200 exchanges, trading firms, private banks, crypto funds and payment processors globally.
“It is rare to find a team that so expertly understands not only traditional asset management, but that of digital assets and how to marry the two worlds to provide institutional-grade infrastructure that truly meets investors’ requirements,” said Josh Bell, general partner at Dawn Capital.
Crypto custodians have been raising money at a frenzied rate in recent months. San Francisco-based Anchorage bagged $80 million in a round led by GIC, Singapore’s sovereign wealth fund, in February. Since then, PayPal and Mike Novogratz’s Galaxy Digital have announced plans to buy Israeli crypto security firm Curv and crypto custodian BitGo, respectively.
Founded in 2018, Copper’s last raise was an $8 million Series A round in February 2020, with participation from Target Global, LocalGlobe and MMC Ventures.
Copper’s product is built using multi-party computation (MPC), a method of splitting private keys to help guard against cybercrime. The company also offers payment settlement and prime brokerage services.