Copper, a firm focused on digital asset custody, collateral management and prime services, is delighted to have partnered with Kraken MTF, the UK FCA-authorized crypto derivatives exchange in Europe, in order to “provide off-exchange settlement for institutional clients.”
To actively trade digital assets, institutional investors “need multi-exchange connectivity to diversify risk, enhance price discovery and improve access to liquidity.”
Through ClearLoop, Copper facilitates this connectivity, “enabling investors to delegate funds and trade virtual balances on exchange, with settlements occurring on Copper’s infrastructure.”
Once the legal documentation is finalized, institutional investors will “be able to trade on Kraken MTF using ClearLoop, providing clients with access to a crypto derivatives venue that trades around-the-clock, thereby enabling them to effectively manage risk and hedge their positions in a derivatives market that also operates 24/7.”
Acquired by Kraken in 2019 when it traded as Crypto Facilities, Kraken MTF is said to be “the ideal partner for institutions looking for price exposure to digital assets.”
As a multilateral trading facility in the UK, it satisfies all of “the compliance and regulatory requirements institutions need from a venue.”
Mark Jennings, CEO of Kraken MTF said:
“For the past few years, volumes in crypto derivatives have regularly exceeded those seen in the spot market and it appears institutions are driving most of this new activity. Key infrastructure developments, like the Kraken MTF integration with ClearLoop, will form the baseline as institutional engagement in this asset-class continues to increase.”
ClearLoop empowers institutional investors by “allowing them to delegate assets instantly, improving capital efficiency and streamlining the process, making collateral more agile and responsive to market dynamics.”
Investors also benefit from significant cost savings; trades settle directly on Copper’s infrastructure, “bypassing the blockchain level and the corresponding network fees.”
Built for institutional investors, ClearLoop provides “secure and efficient collateral management with optimised operational workflows.”
This allows investors to better focus “on their core investment strategies.”
Dmitry Tokarev, CEO at Copper.co commented:
“I am immensely proud to announce our collaboration with Kraken MTF, one of the industry’s oldest and leading exchanges. Together, we are shaping the future of financial market infrastructure by revolutionising liquidity and security for institutional clients. Our shared vision is to build a resilient and innovative ecosystem that sets new standards. Copper is excited to embark on this transformative journey alongside the Kraken team.”
ClearLoop’s exchange network now “includes eight live exchanges: OKX, BYBIT, Deribit, BIT, Gate.io, BITFINEX, Bitget, and PowerTrade, with Kraken MTF, Bitstamp and Bitmart coming soon.”
As noted in the update, Crypto Facilities Limited, dba Kraken MTF, is “an institutional trading platform for derivatives on crypto-assets.”
Based in London, institutions can trade “an array of cryptocurrency derivatives, both long and short, around the clock.”
Crypto Facilities acquired a multilateral trading facility (MTF) permission “in 2019, and is authorized and regulated by the UK Financial Conduct Authority.”
