Digital asset custodian Copper is reportedly considering an initial public offering (IPO) shortly after rival BitGo’s debut on the New York Stock Exchange, underscoring growing institutional appetite for cryptocurrency infrastructure companies.
Citing sources close to the discussions, CoinDesk reported on Thursday that Copper is exploring the possibility of listing its shares on the stock exchange, and that Deutsche Bank, Goldman Sachs and Citigroup are among the banks involved.
A Copper spokesman said the company does not currently plan to list on the stock exchange, but declined to comment on whether the custodian is in preliminary talks about going public.
Backed by Barclays, Copper provides institutional-grade custody, settlement and collateral management services designed to assist financial institutions store and move digital assets while reducing counterparty risk.
As Cointelegraph reported last year, Cantor Fitzgerald selected Copper as its Bitcoin (BTC) custodian alongside Anchorage Digital. Copper has also partnered with Coinbase to make over-the-counter settlements easier for institutional clients.
Institutional interest in digital assets continues to grow amid regulatory changes in the US. A second cryptocurrency custodian moving toward public markets would further strengthen the sector’s role as a financial market infrastructure, comparable to classic clearinghouses and custodian banks.
Related: Crypto’s bank-like pivot puts JPMorgan on edge
BitGo’s IPO highlights the growing momentum of cryptocurrencies on Wall Street
BitGo debuted on U.S. markets last week, pricing its initial public offering at $18 per share after raising more than $200 million in gross proceeds from the sale of 11.8 million shares of Class A common stock.
Like several recent cryptocurrency-focused IPOs, BitGo shares rose sharply in early trading before falling. Since then, the company’s shares have fallen below their IPO price and now have a market capitalization of approximately $1.4 billion.
The withdrawal underscores the volatility faced by newly listed digital asset companies even as public market interest in the sector continues to grow.
Nevertheless, BitGo’s listing highlights the growing position of cryptocurrencies in classic capital markets.
Over the past year, several digital asset companies have gone public, including stablecoin issuer Circle, cryptocurrency exchange Gemini, digital asset exchange operator Bullish and Figure Technologies, a financial technology company that uses blockchain infrastructure to support lending.
Other crypto companies are also reportedly considering a potential public listing, including cryptocurrency exchange Kraken and hardware wallet provider Ledger.
Related: ‘Mixed year for IPOs’ as cryptocurrencies drag down US IPO performance
