- BitGo and Copper have partnered to enhance their transaction settlement networks, aiming to drive global market participation and reduce risks associated with trading market infrastructure.
- The partnership will enable international institutional clients to trade on major global exchanges while ensuring secure asset custody within a regulated environment.
BitGo, a well-known digital asset custodian, and Copper, a pioneering force in institutional digital asset infrastructure, have joined forces to improve their existing transaction settlement networks that operate outside of traditional exchanges.
This collaboration between BitGo’s Go Network and Copper’s ClearLoop is poised to drive the global expansion of institutional market participation while reducing risks associated with trading market infrastructure.
International institutional clients stand to gain several key advantages from this partnership. Firstly, they will have the ability to trade on major global exchanges while ensuring the secure custody of their assets within a regulated environment.
Furthermore, this collaboration will create an institutional environment that encourages users to adopt a new standard of digital asset infrastructure, challenging the conventional practice of holding assets directly on individual exchanges.
Crucially, the partnership offers protection against bankruptcy by utilizing BitGo Go Network wallets and the Copper ClearLoop trust structure, which is governed by English law.
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Mike Belshe, the CEO of BitGo, emphasized the significance of this partnership, stating, “BitGo and Copper are joining forces to address a critical missing component in market infrastructure that has plagued the industry for years and contributed to various market events like the collapses of FTX, Mt Gox, Coincheck, and others. With these settlement networks, we can finally settle assets safely and securely without direct exposure to exchanges. With BitGo joining the ClearLoop network, BitGo’s users’ funds remain in regulated custody.”
As the industry advances and institutional adoption grows, Copper is incorporating proven best practices from traditional financial markets to meet the increasing demand from clients for diversified counterparty risks and the evolving needs of investors. Since 2020, Copper’s off-exchange settlement solution, ClearLoop, has been mitigating counterparty risks in partnership with exchanges and prime brokers, and now in collaboration with BitGo.
Dmitry Tokarev, CEO at Copper.co, expressed, “Together with BitGo, we are striving to provide secure and reliable custody and trading services for institutional investors outside of the US. Copper takes pride in collaborating with industry leaders like BitGo to develop the most trustworthy and responsible financial market infrastructure, demonstrating our dedication to the long-term success of the digital asset ecosystem.”
Leon Marshall, chief executive of Europe at Galaxy, welcomed the expansion of Go Network’s capabilities and digital asset market infrastructure. He stated, “The separation of qualified custody and global exchange access offers investors enhanced risk mitigation, capital efficiency, and liquidity, deepening access to the digital asset market.”
By combining the strengths of BitGo’s Go Network and Copper’s ClearLoop, this partnership is set to establish a more robust and efficient framework for managing digital assets, ultimately building greater trust and reliability within the digital asset ecosystem.
This collaborative effort marks a significant step forward in the industry, underlining the commitment of both BitGo and Copper to revolutionize and establish a more resilient and secure infrastructure for the evolving digital asset landscape.