BitGo, a digital asset custodian, and Copper, a firm focused on institutional digital asset infrastructure, announce their partnership in order “to expand their existing off-exchange settlement networks.”
This partnership between BitGo’s Go Network and Copper’s ClearLoop facilitates the global growth of institutional market participation “as well as the de-risking of trading market infrastructure.”
What this partnership will bring for international institutional clients:
The ability to trade on leading global exchanges “while assets are held within a regulated custody ring-fenced environment.”
An institutional environment for users “to participate in a new standard of digital asset infrastructure, challenging the existing model of holding assets directly on individual exchanges.”
Bankruptcy remote protection through “both BitGo Go Network wallets and the Copper ClearLoop English law governed trust structure.”
Mike Belshe, BitGo CEO, said:
“BitGo and Copper are coming together “to solve a critical missing component of market infrastructure which has plagued the industry for years and contributed to a series of market events, such as the collapse of FTX, Mt Gox, Coincheck, and others. With these settlement networks, we’re finally able to settle assets safely and securely without direct exposure to exchanges. With BitGo joining the ClearLoop network, BitGo’s users’ funds never leave its regulated custody,”
As the industry matures and institutional adoption rises, Copper is “taking some of the tried and tested best practices from traditional financial markets to meet the growing demand of clients to diversify counterparty risk and meet the increased demand of investors.”
Since 2020, Copper’s off-exchange settlement solution, ClearLoop, has been mitigating counterparty risk “in partnership with exchanges and prime brokers, and now in partnership with BitGo.”
Dmitry Tokarev, CEO at Copper.co said:
“Together with BitGo we are working to provide safe and reliable custody and trading services for institutional investors outside of the US. Copper is proud to collaborate with leaders like BitGo, to keep developing the most trustworthy and responsible financial market infrastructure, showing our dedication to the long-term success of the digital asset ecosystem.”
Partnering to drive the next iteration of innovation and market infrastructure for this industry is our mutual goal and what brought us together.
The combination of capital-efficient solutions and secure custody of digital assets “adds much-needed accountability and functionality to the industry for years to come.”
For the first time, institutions can “custody, access and settle USD and digital assets instantly, 24/7 on a single platform.”
As noted in the update, ClearLoop is the off-exchange settlement solution, “mitigating counterparty risk; and increasing capital efficiency for institutional investors.”
It offers:
- Risk-clearing settlement times of up to 4 hours on Copper’s infrastructure.
- Reduced network fees through off-exchange settlement.
- Instant delegation of assets across eight live exchanges, with a further four launching in 2024 (subject to contract).
- Bankruptcy remote protection within the ClearLoop English law governed trust structure.
- 24/7 client support and risk monitoring.
