Lord Hammond to Step Down as Chairman of Copper Amid Strategic Shift to U.S. Market
In a significant development for the digital assets sector, Lord Philip Hammond, the former Chancellor of the Exchequer, is set to resign as chairman of Copper, a London-based digital assets group. This decision comes as the company pivots its growth strategy from the UK to the more lucrative U.S. market.
Transitioning Leadership
Sky News has reported that Copper’s board is actively seeking a successor to Lord Hammond, who has held the chairmanship since early 2023. Sources indicate that the recruitment process is well underway, with expectations of appointing a seasoned American finance executive by the end of the year.
Despite stepping down, Lord Hammond is anticipated to retain his status as a shareholder in Copper. His involvement with the company has been extensive; prior to his chairmanship, he served as an adviser to the board. In addition to his role at Copper, he has taken on various positions in the private sector, including his current chairmanship at Railsr, a company specializing in embedded finance.
Copper’s Business Model and Market Position
Founded in 2018, Copper specializes in providing digital asset custody and trading technology services. The firm has attracted significant investment from notable entities, including Barclays and Alan Howard, co-founder of the hedge fund Brevan Howard. With hundreds of employees, Copper has established itself as a key player in the rapidly evolving digital asset landscape.
However, the company has faced challenges in the UK regulatory environment. Lord Hammond has been vocal about the slow pace of regulatory reform in the UK, particularly as the global cryptocurrency and blockchain sectors continue to evolve. In December 2022, it was reported that Copper had abandoned its second attempt to register with the Financial Conduct Authority (FCA), a move that underscored the difficulties facing digital asset firms in the UK.
Regulatory Landscape and Competitive Pressures
The regulatory landscape for digital assets has been a contentious issue, particularly in the UK. Lord Hammond previously expressed concerns that the UK was lagging behind other jurisdictions, such as Switzerland and the European Union, in adapting to the burgeoning digital asset market. He emphasized the need for a willingness to embrace measured risks to foster innovation in this critical sector.
In a statement to the Financial Times, he remarked, “There has to be appetite to take some measured risk.” This sentiment reflects a broader concern among industry leaders that the UK could miss out on opportunities in a rapidly growing financial services segment.
Recent Developments and Future Prospects
Copper has not secured significant new funding in recent years, and it is not currently believed to require additional capital. The company is now led by Amar Kuchinad, a former Goldman Sachs executive, who succeeded founder Dmitry Tokarev. Recently, Copper announced the appointment of Rosie Murphy Williams as its chief operating officer. Williams brings experience from her previous roles at the London Stock Exchange and Royal Bank of Scotland, further strengthening the company’s leadership team.
In a strategic move to enhance its offerings, Copper recently formed an alliance with Cantor Fitzgerald’s new Bitcoin financing business. This partnership highlights the ongoing growth of crypto assets and the businesses that support them, particularly in the U.S. market, which has seen a surge in interest from investors and companies alike.
The U.S. Market: A New Frontier
The shift towards the U.S. market is not merely a strategic pivot for Copper; it reflects a broader trend among digital asset companies. Since the onset of Donald Trump’s second term as President, a wave of digital asset firms has sought to enter public markets, buoyed by a favorable regulatory environment and increasing investor interest. The U.S. has emerged as a hotspot for innovation in the financial technology sector, making it an attractive destination for companies like Copper.
Conclusion
As Lord Hammond prepares to step down from his role at Copper, the company is poised to navigate a transformative phase in its growth strategy. The transition to the U.S. market represents both a challenge and an opportunity, as Copper seeks to capitalize on the burgeoning interest in digital assets. With a new leadership team in place and strategic partnerships forming, the future looks promising for Copper as it aims to solidify its position in the competitive landscape of digital finance.
While the regulatory hurdles in the UK remain a concern, the company’s focus on the U.S. market may provide the impetus needed for growth and innovation in the digital asset space. As the industry continues to evolve, Copper’s ability to adapt and thrive will be closely watched by investors and stakeholders alike.
