Matrixport’s derivative exchange Bit.com and London-based digital asset custodian Copper.co have announced the completion of Bit.com’s integration with Copper ClearLoop, which facilitates instant, off-exchange cryptocurrency settlements.
This integration will allow institutional clients to keep their assets secure under Copper’s segregated custodian account, while trading on Bit.com and settling trades in their ClearLoop account. This solution could be extremely helpful for institutional traders because it ensures accessibility, convenience and bypasses security concerns typically linked to trading on cryptocurrency exchanges – including exchanges being hacked, or assets being frozen.
To date, institutional users trading crypto assets have had to move their assets from their secure cold wallets into the exchange’s hot wallets, a process that can often take between ten minutes to one hour. These delays are exacerbated when considering withdrawals and post-trade. ClearLoop eliminates this by enabling off-exchange settlement which takes less than one second.
ClearLoop ensures that both the client and the exchange have enough assets allocated to cover any position submitted by a trader before it is opened. Copper then settles trades instantly between parties after the trade has taken place. It also enables traders to have full control over their response to market motion and price action.
“We are delighted to welcome Bit.com to the growing ClearLoop network and offer our institutional-grade security to its traders. We look forward to working with its talented team to ensure traders’ assets are secure and, by extension, help Bit.com to grow their customer base. By eliminating historic security risks and providing the peace of mind institutions demand when allocating assets to crypto, we are paving the way to making digital assets mainstream. ” said Dmitry Tokarev, Founder and CEO of Copper.
Since Bit.com’s inception in August 2020, Bit.com has traded more than USD $8.4 billion and is on the way to take a bigger market share. At the moment, the exchange trades between USD $100-200 million trading volume on a daily basis.
“Integrating with Copper ClearLoop is a natural step for Bit.com. Copper’s innovative solution solves pain points for institutional users when it comes to counterparty risk and deposit/withdrawal waiting time. We believe the trading volume on Bit.com will benefit from this added method of access via Copper ClearLoop and an expanded institutional clientele as a result.” said Cynthia Wu, Head of Business Development and Sales, Bit.com.