BIT upgrades integration with UK digital asset settlement network Copper ClearLoop
“The growing number of exchanges joining ClearLoop is a testament to the industry’s growth and commitment to continued financial market infrastructure maturity.”
BIT, a full-featured cryptocurrency exchange for use by professionals, has decided to upgrade its integration with digital asset settlement network Copper ClearLoop in order to support BIT’s Unified Margin feature, which allows traders to use all of their assets as collateral.
The crypto exchange was launched in August 2020 as an affiliate of Matrixport and is particularly popular among institutionals for its crypto options trading service. The firm provides advanced risk management and fund efficiency supported by Portfolio Margin and Unified Margin.
The ClearLoop upgrade also converted the previously supported coin-margined options to USD-margined options and will adopt the new ClearLoop trust structure, which further reduces clients’ exposure to counterparty risk.
Copper is a SOC2 Type 2 certified company founded in 2018 with ClearLoop at the core of its infrastructure. ClearLoops enables clients to trade and settle in near real time across multiple exchanges, while mitigating counterparty risk and increasing capital efficiency.
Off-exchange settlements, USD-margined options, and trust structure
LAN, the co-founder and COO of BIT, said: “We are extremely pleased to be announcing this innovative and exciting partnership. As a crypto exchange designed for professionals, BIT is committed to addressing clients’ concerns by continuously refining its infrastructure, enhancing trading tools, and expanding industry partnerships. We aim to deliver a secure and professional trading platform and provide clients with an advanced trading experience.”
Dmitry Tokarev, founder and CEO of Copper.co, commented: “We’re proud to grow our partnership with BIT as they adopt the new ClearLoop Trust Structure, providing their institutional clients with even greater protection for their digital assets. The growing number of exchanges joining ClearLoop is a testament to the industry’s growth and commitment to continued financial market infrastructure maturity.”
The ClearLoop technical functionality of off-exchange settlement will remain unchanged but will have the added benefit of bankruptcy remoteness delivered by ClearLoop’s legal framework. Featuring off-exchange settlements, the completion of this upgrade is set to transform the crypto trading experience for institutional clients.
BIT’s institutional clients can now use the crypto exchange’s services without the need to transfer their assets from Copper custody, thereby avoiding security concerns usually associated with trading on cryptocurrency exchanges such as the risk of exchange hacks and asset freezing.
This integration enables institutional clients to securely trade on the BIT exchange with the peace of mind that their assets remain safeguarded under Copper’s segregated custody, mitigating counterparty risk exposure, improving capital efficiency and speeding up settlement times.
