In a pivotal move to enhance cryptocurrency trading for institutional investors, Bitget, a prominent cryptocurrency trading platform, has announced a strategic partnership with Copper, a leading digital asset infrastructure provider. This partnership aims to deliver enhanced off-exchange settlement solutions for institutional clients, marking a significant step forward in the crypto trading market.
Bitget Enhances Crypto Trading With ClearLoop Integration
In a landmark collaboration, Bitget, a leading crypto derivative and copy trading player, has revealed its partnership plans with Copper, a renowned digital asset custody provider. The alliance aims to unveil an off-exchange settlement solution, presenting institutional clients with a platform for real-time trading across exchanges while reducing counterparty risk and bolstering capital efficiency.
With this collaboration, Bitget will become the sixth major exchange this year to synchronize with Copper, thereby joining the Clear Loop network. The integration with ClearLoop presents institutional clients of both companies with the ability to secure their assets within Copper’s infrastructure while granting trading rights of these assets on Bitget.
Under the arrangement, client assets are initially lodged on the Copper platform, which is then connected to a Bitget account. This Bitget account immediately reflects the balance and facilitates active trading across an impressive range of 450 coins and 580 trading pairs. Any discrepancies in the balance between the two accounts are instantly reconciled via API, ensuring smooth operations and financial accuracy.
Dmitry Tokarev, CEO at Copper, said, “Allowing clients to trade on exchanges direct from Copper custody is an important step in institutionalizing the digital asset markets. We’re thrilled to partner with Bitget, bringing off-exchange settlement to their institutional clients while furthering our shared commitment to asset security, and setting higher standards for the crypto industry.”
Establishing Trust: Copper’s Innovative Approach To Mitigate Insolvency Risks
In a strategic move to mitigate the insolvency risk associated with any participant within the ClearLoop network, Copper has devised a novel account structure exclusively dedicated to ClearLoop. An English law trust has been established over this new account structure, with Copper appointed as a security trustee to hold the assets on behalf of the beneficiaries.
Under this innovative arrangement, both clients and exchanges pledge security interests over their assets within the trust, mutually benefiting each other. As part of this trust, exchanges deposit collateral to streamline settlements according to a predefined schedule. This collateral is subject to around-the-clock monitoring by Copper’s financial risk team, assuring both clients and exchanges that settlement obligations will be fulfilled.
Notably, in the unlikely event of Copper’s insolvency, the crypto assets held in trust would be safeguarded from forming part of Copper’s insolvent estate, providing additional security and peace of mind for all parties involved.
Gracy Chen, Managing Director of Bitget, said, “Institutional crypto investors are primarily seeking ways to safeguard their assets and optimize trading. Bitget’s partnership with Copper exemplifies our ongoing efforts to boost confidence among institutional crypto users. ClearLoop and its innovative trust documentation meet these demands, and in doing so, contribute to the maturing of the ecosystem. We look forward to continuing our collaboration with the Copper team as we expand our institutional offering.”
Consistently committed to refining its offerings, Bitget is dedicated to a versatile and resilient trading platform that serves a diverse user base. The ultimate objective is to stimulate wider adoption of cryptocurrencies and pioneer smarter trading methods. Additionally, Bitget is taking proactive measures to strengthen trust in the inherently volatile crypto market. This includes the launch of a substantial 300 million user protection fund and the commitment to provide regular monthly updates to its proof of reserves (PoR), promoting transparency and reassurance for its users.