Collaboration aims to provide institutional-grade product with real market scale, allowing secure trading without direct exposure to exchanges
Two leading cryptocurrency safekeeping firms, BitGo and Copper, are joining forces to consolidate their in-custody settlement networks. This collaboration aims to create an institutional-grade product with real market scale, providing a safer and more secure way to settle assets without direct exposure to exchanges.
The integration of BitGo's Go Network with Copper's ClearLoop system will allow users to access trading on major exchanges without their assets leaving cold storage. This means that institutional clients can trade on global exchanges while their assets are held in a regulated custody environment. The combination of BitGo's secure custody and Copper's off-exchange settlement solution is expected to bring greater risk mitigation, capital efficiency, and liquidity to the digital asset market.
The consolidation of custody services for off-exchange trading directly from cold storage is a logical move, especially in the wake of the collapse of firms like FTX. This collaboration aims to provide firms and institutions with more efficient and regulated access to cryptocurrency trading. By combining their resources, BitGo and Copper are aiming to create a product that can meet the needs of the growing institutional market for digital assets.
While the expansion of the settlement networks is currently focused on non-U.S. users, there are plans to roll it out in the U.S. as well. This move will further expand the reach of the combined network, providing more users with access to secure and efficient trading of digital assets.
The partnership between BitGo and Copper represents a significant step forward in the cryptocurrency market. By combining their settlement networks, they are providing a safer and more efficient way for institutions to trade digital assets. This collaboration is a clear indication of the growing maturity of the cryptocurrency market and the increasing demand for secure and efficient trading solutions.