BitGo and Copper Combine Crypto Custody Settlement Networks

BitGo and Copper Combine Crypto Custody Settlement Networks

Cryptocurrency safekeeping firms BitGo and Copper have joined forces to combine their custody settlement networks. This collaboration allows users to access trading on major exchanges without their assets leaving the secure environment of cold storage. By integrating BitGo’s Go Network with Copper’s ClearLoop system, users can trade on exchanges such as Bybit, OKX, Powertrade, Bitget, Gate.io, Deribit, BIT, Bitfinex, and Bitstamp. The aim is to create an institutional-grade product that offers scale and network effect, catering to the growing demand for off-exchange trading from firms and institutions. The consolidation on the custody front brings together regulated custody and enhanced efficiency for exchanges with fewer integrations with multiple custodians.

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BitGo and Copper Combine Crypto Custody Settlement Networks

Introduction

In a strategic move to enhance crypto custody and settlement networks, BitGo and Copper have joined forces to combine their respective systems. This collaboration aims to provide users with access to off-exchange trading on major platforms while keeping their assets securely stored in cold storage. The integration of BitGo’s Go Network and Copper’s ClearLoop settlement system opens up opportunities for increased market scale and institutional-grade products in the cryptocurrency industry.

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Background of BitGo and Copper

Both BitGo and Copper have established themselves as leading players in the crypto custody space. BitGo, a qualified custodian in the United States, recently acquired a crypto custody license from the German financial regulator BaFin, further strengthening its position in the industry. Meanwhile, Copper made the strategic decision to close its enterprise custody business to focus on developing and refining its ClearLoop settlement network. Launched in 2020, ClearLoop has gained popularity among institutional firms and serves as a key component of Copper’s offerings.

BitGo

BitGo is a renowned name in the crypto custody space, providing secure storage solutions for digital assets. The company offers qualified custodian services in the United States and has been at the forefront of ensuring the safety and security of assets for its clients. With a strong focus on compliance and regulatory standards, BitGo has built a robust reputation in the industry.

Copper

Copper, on the other hand, has made significant strides in the custody market by leveraging its innovative ClearLoop settlement network. This system allows users to trade directly from cold storage wallets, eliminating the need to move assets to hot wallets for trading purposes. By doing so, Copper ensures that assets remain secure throughout the trading process.

The Go Network and ClearLoop

The integration of BitGo’s Go Network and Copper’s ClearLoop settlement system marks a milestone in the evolution of crypto custody and settlement solutions. By combining the strengths of both networks, users can access a wide range of major exchanges without compromising the security of their assets. The participating exchanges include Bybit, OKX, Powertrade, Bitget, Gate.io, Deribit, BIT, Bitfinex, and Bitstamp.

Benefits of Custody Settlement Networks

The collaboration between BitGo and Copper brings several key benefits to the table.

Access to Off-Exchange Trading

One of the significant advantages of custody settlement networks is the ability to trade directly from cold storage wallets. This eliminates the need to transfer assets to hot wallets for trading purposes, reducing the risk of exposing assets to potential security threats. By providing access to off-exchange trading, BitGo and Copper enable users to tap into a broader range of trading opportunities, expanding their investment possibilities.

Security of Cold Storage

Cold storage remains the gold standard for storing cryptocurrencies securely. By enabling trading directly from cold storage wallets, BitGo and Copper ensure that assets are protected throughout the trading process. This added layer of security is crucial for institutional investors and individuals who prioritize asset safety.

Efficiency for Exchanges

The integration of custody settlement networks streamlines the trading process for exchanges. Exchanges often have to integrate with multiple custodians to provide users with access to trading from cold storage. By consolidating custody solutions, BitGo and Copper make it easier for exchanges to offer off-exchange trading, reducing the time and effort required for integration.

Expansion Plans

The collaboration between BitGo and Copper initially targets non-U.S. users, providing them with access to a wide range of exchanges through the integrated custody settlement networks. However, there are plans to expand the offering to U.S. users as well. BitGo intends to integrate with U.S.-based exchanges like Bitstamp and explore partnerships with other prominent platforms, allowing for seamless trading experiences within the country.

Conclusion

BitGo and Copper’s collaboration to combine their custody settlement networks marks a significant development in the crypto industry. By leveraging their expertise in secure custody solutions, both firms are enhancing the trading experience for their users. The integration of BitGo’s Go Network and Copper’s ClearLoop settlement system enables access to off-exchange trading, ensures the security of assets stored in cold storage, and streamlines the trading process for exchanges. With further expansion plans on the horizon, BitGo and Copper are poised to play a pivotal role in shaping the future of crypto custody settlement networks.

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