BitGo and Copper Unite Networks: Revolutionizing Institutional Crypto Trading with Secure Cold Storage

In a significant move for institutional cryptocurrency trading, industry leaders BitGo and Copper have joined forces, integrating their in-custody settlement networks. What does this mean for you? Imagine trading on your favorite crypto exchanges without ever having to move your precious digital assets out of the fortress of cold storage. This collaboration is set to redefine security and efficiency in the crypto trading landscape, especially for institutions.

What’s Happening? Bridging the Gap Between Security and Trading

The integration links BitGo’s Go Network with Copper’s ClearLoop, creating a powerful synergy. Think of it as building a secure highway connecting cold storage vaults directly to the bustling marketplaces of cryptocurrency exchanges. This highway allows for seamless and secure trading across a growing list of prominent exchanges.

Which exchanges are we talking about? The network effect already includes major players like:

• Bybit
• OKX
• Powertrade
• Bitget
• Gate.io
• Deribit
• BIT
• Bitfinex
• Bitstamp

This integration means users of these exchanges can now trade with greater peace of mind, knowing their assets remain securely in cold storage throughout the trading process.

Why is This Integration a Game Changer?

Matthew Ballensweig, who heads BitGo’s Go Network, puts it perfectly: “Do we want to win versus traditional finance?” This partnership is a bold step towards creating a robust, institutional-grade crypto ecosystem that can rival traditional finance infrastructure. Instead of waiting for traditional giants to build out the necessary custody and connectivity, BitGo and Copper are taking the lead, building it themselves for the crypto-native world.

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The FTX Factor: Learning from the Past

The collapse of FTX and other centralized entities has highlighted the critical need for secure crypto custody. This integration directly addresses those concerns. By enabling off-exchange trading directly from cold storage, BitGo and Copper are offering a solution that minimizes counterparty risk and enhances security.

Think about it:

• Enhanced Security: Assets stay in cold storage, reducing vulnerability to hacks and exchange failures.
• Increased Efficiency: Streamlined settlement processes and fewer interfaces with multiple custodians simplify operations for exchanges.
• Institutional Grade: Provides the level of security and infrastructure required to attract and retain institutional capital.

BitGo and Copper: A Perfect Match

The collaboration between BitGo and Copper makes strategic sense. BitGo, a U.S.-based qualified custodian, recently secured a crypto custody license in Germany, expanding its global reach and regulatory compliance. Copper, on the other hand, made a strategic pivot earlier this year, focusing on its ClearLoop settlement network, which has already garnered significant traction with hundreds of institutional clients. By combining their strengths, they create a more comprehensive and powerful offering.

Global Expansion on the Horizon

Initially, the expanded network is geared towards non-U.S. users. However, the plan is to bring this enhanced security and efficiency to the U.S. market as well. BitGo is actively working with U.S.-based exchanges, including Bitstamp, to integrate them into the network.

Ballensweig explained the future roadmap: “As we add exchanges in the U.S. – for instance, we’re working with Bitstamp, and we’re talking to a host of other U.S.-based exchanges – our plan is to integrate those. So that means we can have basically two avenues: one for offshore, that kind of goes through Copper’s ClearLoop API, and hits the non-U.S. exchanges, and then one avenue natively through BitGo that touches the US exchanges.”

Looking Ahead: A More Secure and Efficient Crypto Future

The integration of BitGo and Copper’s settlement networks represents a significant step forward for institutional crypto trading. By prioritizing security and efficiency, they are building a more robust and trustworthy ecosystem. This collaboration not only benefits institutions but also contributes to the overall maturation and stability of the cryptocurrency market. As they expand their reach to include more exchanges and jurisdictions, including the U.S., the impact of this partnership is poised to become even more profound, potentially ushering in a new era of institutional adoption in the crypto space.