The partnership will give institutions access to off-exchange settlement and market-first trust documentation, built to mitigate exchange counterparty and insolvency risks.
Bitstamp, the world's longest-running cryptocurrency exchange, has announced an extended partnership with Copper, an institutional gateway for digital asset investment, to integrate with its ClearLoop network.
With the rise of institutional investment in the cryptocurrency market, market makers and institutional clients are increasingly looking for gold standard ‘off-exchange’ settlement. Enter ClearLoop, a product Copper launched in 2020 to improve counterparty risk management by allowing investors to instantly settle crypto trades off-exchange.
The integration with Bitstamp will enable institutional clients to trade with Bitstamp without needing to move assets from Copper's custodial environment.
"Allowing clients to trade on exchanges direct from Copper custody is an important step in institutionalizing the digital asset markets. More than ever, it's essential that custodians and exchanges work together to effectively address primary risks such as exchange-counterparty risk," Dmitry Tokarev, CEO of Copper, said in a statement shared with Blockhead.
ClearLoop previously announced integrations with Deribit, Bit, OKX, Bybit and others.
The announcement comes a week after Bitstamp retained its position as the No.1-rated centralised exchange on CCData's (formerly CryptoCompare) Exchange Benchmark. Bitstamp also maintained the only AA rating.
Bitstamp said that as market infrastructure matures, the company will continue to expand its offering and provide customers with safeguarding options.
The partnership represents a significant step for both companies in serving a heightened focus on counterparty risk management in the wake of recent market events. As institutional investors continue to enter the cryptocurrency market, asset security and risk management will remain a top priority, and solutions like ClearLoop will play an important role in meeting these needs.
Related: Institutional Clients to Benefit from Bybit, Copper Partnership
The world of Web3 can be quite a whirlwind. Whether it’s crypto news in Singapore, South East Asia or even across the globe, we understand how busy the industry is keeping you, so we kindly send out three newsletters each week:
- BlockBeat for a wrap-up of the week’s digital assets news
- Blockhead Brief for weekend happenings as well as what to look forward to in the week ahead
- Business Bulletin for macroeconomic updates and industry developments.
To avoid FOMO and access member-only features, click here to subscribe for FREE.