Cryptocurrency company Copper has announced that it will now provide custody and trading services for tokenized money market funds, including BlackRock's BUIDL, according to a recent press statement.

Copper clients will be able to use tokenized money market funds as collateral for derivatives trading, following the regulatory approval from the Financial Services Regulatory Authority (FSRA) in Abu Dhabi. This approval enables the company to form new partnerships with significant stakeholders in the tokenization space, such as Securitize, Franklin Templeton, Ondo, and Hashnote. Securitize acts as the transfer agent and tokenization platform for BlackRock's USD Institutional Digital Liquidity Fund, which operates on the Ethereum blockchain and is symbolized by the BUIDL token.

Tokenized Treasuries, which represent U.S. government bonds digitally, are leading the way in translating traditional assets into blockchain tokens, making them tradable on platforms like Ethereum, Stellar, Solana, and Mantle. Major financial institutions and digital asset firms are striving to bring financial instruments including government bonds and private credit onto blockchain networks for improved efficiency and quicker settlements.

"If the Federal Reserve maintains high interest rates for an extended period, these tokenized money market funds could provide better returns for those in the derivative market by generating income from collateral placed with counterparties," said Amar Kuchinad, Copper's global CEO, in a statement.

The tokenized Treasury market has nearly tripled in growth this year, soaring from $780 million in January to about $2.3 billion, as per information from rwa.xyz.

Kuchinad, a former adviser to the SEC, took over from Dmitry Tokarev as global CEO last month.