Recently Bitget, the popular crypto exchange, announced its collaboration with Cooper, a digital asset custody provider, to offer off-exchange settlement to institutional clients.
Below are all the details.
Bitget and the partnership with Copper: increasing user trust
As anticipated, Bitget, the leading cryptocurrency exchange and copy trading platform, announced that it will partner with Copper, the leading digital asset custody provider, to introduce an off-exchange settlement solution.
This will allow institutional clients to trade and settle near real-time on all exchanges, while mitigating counterparty risk and increasing capital efficiency.
We see that Bitget will become the sixth major exchange this year to integrate with Copper and join the Clear Loop network. The ClearLoop integration allows institutional users of both companies to maintain resources within Copper’s infrastructure while simultaneously delegating those resources to trading on Bitget.
Specifically, customer resources are deposited on the Copper platform and then linked to a Bitget account. The Bitget account instantly mirrors this balance and allows active trading on 450 coins and 580 trading pairs.
Differences in balance between the two accounts are automatically adjusted via API. In addition, to address the risk of insolvency of any ClearLoop participant, Copper has established a new account structure dedicated to ClearLoop on which an English-law trust is created.
Copper is appointed security trustee and holds the assets on behalf of the beneficiaries. Clients and exchanges grant security interests in their assets within the trust in favor of each other.
Within the trust, the exchange posts collateral to facilitate settlement according to the predetermined settlement schedule.
The collateral is monitored 24 hours a day, 7 days a week by Copper’s financial risk team, providing both clients and exchanges with confidence that settlement obligations will be met.
Should Copper become insolvent, cryptographic assets held in trust would not be part of Copper’s insolvent assets.
Some statements regarding the Bitget-Cooper collaboration
At the same time, Bitget has continuously refined its products and services to develop a robust and versatile trading platform for different user groups, with the goal of encouraging people to embrace cryptocurrencies and find smarter ways to trade.
In addition, the exchange has taken steps to boost confidence in the volatile cryptocurrency market, including the introduction of a 300 million user protection fund and regular monthly updates to its proof of reserve (PoR).
Gracy Chen, CEO of Bitget, stated the following:
“Institutional cryptocurrency investors are primarily looking for ways to safeguard their assets and optimize trading. Bitget’s partnership with Copper exemplifies our continued efforts to build trust among institutional crypto users.
ClearLoop and its innovative trust documentation address these needs and, in doing so, contribute to the maturation of the ecosystem. We look forward to continuing our partnership with the Copper team as we expand our institutional offering.”
For his part, Dmitry Tokarev, CEO of Copper, said:
“Enabling clients to trade exchanges directly from Copper’s custody is an important step in institutionalizing digital asset markets.
We are thrilled to partner with Bitget, bringing over-the-counter settlement to their institutional clients while furthering our shared commitment to asset safety, and setting higher standards for the cryptocurrency industry.”
Bitget registered as a VASP in Poland
More news for Bitget: On 23 May, the exchange announced its registration as a virtual asset service provider (VASP) in Poland. The regulatory license allows Bitget to operate legally within the Polish market.
In April, Bitget received its VASP license in Lithuania, allowing it to offer cryptocurrency-related services both within and from the Baltic nation. In this regard, Chen stated the following:
“We understand that regulation is the future of the cryptocurrency industry if mainstream adoption is to be achieved. Recent registrations in the two European countries enhance our presence and service in Europe.”
According to its latest quarterly update, Bitget increased its staff from 1,000 to 1,300 members during Q1 and still has many open positions in research and development, compliance, business development, operations, and customer service.
In addition, the recovery in the price of Bitcoin (BTC) and other cryptocurrencies allowed the exchange’s User Protection Fund to gain $80 million in value to reach $380 million.
During the same period, Bitget’s futures trading volume grew 27% quarter-on-quarter to $658 billion. The exchange currently has 8 million registered users in more than 100 countries.