The companies’ partnership will allow institutional customers to trade and settle on exchanges in near real time, reducing counterparty risk and improving capital efficiency.
Bitget will become the sixth major exchange to integrate with Copper this year, joining the Clear Loop network.
The ClearLoop integration allows institutional users of both companies to store assets on Copper’s infrastructure while delegating those assets for trading on Bitget.
“Institutional crypto investors are primarily looking for ways to protect their assets and optimize trading.
Bitget’s partnership with Copper exemplifies our ongoing efforts to build trust among institutional cryptocurrency users.
ClearLoop and its innovative trust documentation meet these requirements and thereby contribute to the ecosystem.
We look forward to continuing our partnership with the Copper team as we expand our institutional offering,” said Bitget Managing Director Gracie Chen.
Customer assets are deposited on the Copper platform and then linked to an account on Bitget.
The Bitget account instantly reflects this balance and allows you to trade 450 tokens and 580 trading pairs.
Differences in balance between the two accounts are automatically resolved through the API.
To reduce the risk of insolvency for any ClearLoop member, Copper created a new account structure for ClearLoop that creates an English law trust.
Copper is appointed as a trustee and holds the assets on behalf of the beneficiaries. Clients and exchanges grant liens on their assets under a trust in favor of each other.
Under the trust, the exchange posts collateral to facilitate settlement in accordance with a predetermined settlement schedule.
The collateral is monitored 24/7 by Copper’s financial risk group, giving customers and exchanges confidence that settlement obligations will be met.
If Copper became insolvent, the crypto assets held in trust would not become an insolvent part of Copper.
“Enabling customers to trade on exchanges directly from Copper’s vault is an important step in institutionalizing digital asset markets.
We are very pleased to partner with Bitget to offer OTC settlement to their institutional customers, reinforcing our overall commitment to asset security and setting higher standards for the crypto industry,” says Copper CEO Dmitry Tokarev.
Recall that last year Bitget launched a $200 million fund to protect users in volatile market conditions.