Revenue Growth, But Uneven Foundations
According to the filings, only $7 million of Copper’s 2024 revenue was generated in the UK, with the majority now tied to U.S., EU, and Middle East operations. Administrative costs were cut aggressively, down from $91 million to $77 million, while headcount was trimmed slightly from 225 to 210 employees.
The topline growth looks impressive, but the persistent losses highlight a fundamental tension: custody firms must spend heavily on compliance, security, and international expansion before profitability can emerge.
Leadership Transition
The losses coincide with a major leadership reshuffle. Founder and CEO Dmitry Tokarev was replaced in late 2024 by Amar Kuchinad, a former Goldman Sachs banker recruited to bolster U.S. credibility. At the same time, Lord Philip Hammond, Copper’s longtime chair and a symbol of its UK roots, is stepping aside to make room for American leadership.
Analysts say the moves reflect both investor pressure and strategic necessity. “If you want to win the trust of U.S. institutions, you need someone with Wall Street DNA at the helm,” noted one industry observer.
Custody Isn’t Immune to Volatility
Copper touts its multi-party computation (MPC) architecture and segregated vaults as a way to minimize single points of failure — a technical model widely respected across the industry. But technology alone doesn’t erase business risk.
In custody, trust is the true currency. Losses of this magnitude can raise doubts among hedge funds, exchanges, and asset managers that rely on custodians to keep assets safe. For competitors like Fireblocks and Anchorage, which have leaned into profitability narratives, Copper’s turbulence could become an opportunity to lure clients.
Pressure on the Infrastructure Layer
The challenges go beyond Copper. Across the industry, custodians and settlement firms are facing:
- Thinning margins as competition intensifies
- Rising compliance costs, especially across multiple jurisdictions
- High client expectations for zero downtime and seamless integration with trading platforms
For institutions weighing custody partners, financial resilience is starting to matter as much as technical safeguards.
What Comes Next
Key signals to watch in Copper’s turnaround include:
- Whether new CEO Amar Kuchinad prioritizes U.S. and Middle East expansion or pursues a more balanced global strategy
- If the firm seeks fresh capital injections to stabilize its balance sheet
- How major clients respond — do they renew mandates, or quietly explore competitors?
- Whether rivals use Copper’s losses as a wedge to claim market share
Copper’s case shows that even the “plumbing” of crypto is subject to volatility. Custody is supposed to be the safe, boring part of the industry. But as institutional adoption inches forward, it may be custody providers themselves that are under the sharpest spotlight.