Kraken has announced a partnership with Copper to provide off-venue settlement for institutional clients. Copper, renowned for its expertise in digital asset custody, collateral management, and prime services, facilitates this through its ClearLoop platform. This collaboration marks a significant step in advancing the infrastructure for institutional engagement in the cryptocurrency derivatives market.
Copper’s ClearLoop Expands Its Reach
ClearLoop, Copper’s innovative exchange network, allows clients to delegate funds and trade virtual balances on exchanges while settlements occur on Copper’s infrastructure. Currently, ClearLoop includes nine live exchanges: Kraken MTF, OKX, BYBIT, Deribit, BIT, Gate.io, BITFINEX, Bitget, and PowerTrade. Additional exchanges such as Bitstamp and Bitmart are expected to join soon, further expanding its reach.
Leadership Comments on the Collaboration
Mark Jennings, CEO of Kraken MTF, highlighted that crypto derivatives volumes have consistently exceeded those in the spot market in recent years, driven primarily by institutional activity. Jennings emphasized that key infrastructure developments, such as the integration of Kraken MTF with ClearLoop, are crucial as institutional engagement in the asset class continues to grow.
Dmitry Tokarev, CEO of Copper.co, expressed immense pride in the collaboration with Kraken MTF, describing it as a partnership with one of the longest-standing FCA-authorized venues in crypto. Tokarev articulated a shared vision of revolutionizing liquidity and security for institutional clients and building a resilient and innovative ecosystem that sets new industry standards.
Michael Lie, Global Head of Digital Asset Trading at Flow Traders, commented on the importance of integrating ClearLoop’s off-exchange settlement with Kraken MTF. He noted that this collaboration marks a significant advancement in digital asset trading, reflecting a commitment to promoting industry standards and ensuring a secure, streamlined trading experience for institutional clients.
Benefits of the ClearLoop Integration
Institutional clients trading on Kraken MTF through ClearLoop benefit from 24/7 access to a crypto derivatives venue, enabling effective risk management and hedging in a market that operates continuously. ClearLoop enhances capital efficiency by allowing investors to delegate assets instantly, thus making collateral more agile and responsive to market dynamics.
Trades conducted through ClearLoop settle directly on Copper’s infrastructure, bypassing the blockchain and associated network fees. This method provides secure and efficient collateral management while optimizing operational workflows. The elimination of blockchain-level transactions reduces costs and improves the speed and efficiency of trading activities.
A New Standard in Financial Market Infrastructure
The partnership between Kraken and Copper represents a significant step forward in the evolution of financial market infrastructure for digital assets. By integrating off-venue settlement through ClearLoop, the collaboration aims to set new standards for liquidity and security in institutional trading. This initiative underscores a commitment to innovation and the creation of a more efficient and secure trading environment.
Looking Ahead
As the digital asset landscape continues to evolve, the partnership between Kraken and Copper positions both companies at the forefront of institutional crypto trading. The integration of ClearLoop with Kraken MTF not only enhances the trading experience for institutional clients but also sets a precedent for future developments in the industry. This collaboration exemplifies the potential for technological advancements to drive significant improvements in market infrastructure and operational efficiency.
Conclusion
The strategic partnership between Kraken and Copper, facilitated through the ClearLoop platform, revolutionizes the trading experience for institutional clients in the cryptocurrency derivatives market. By bypassing blockchain-level transactions and enhancing capital efficiency, this collaboration sets a new standard for liquidity and security in digital asset trading. As the industry continues to mature, such innovations are expected to play a crucial role in shaping the future of institutional engagement in the crypto space.