BitGo and Copper Collaborate to Enhance Custody Settlement Networks

BitGo, a prominent custodian of digital assets, and Copper, a trailblazer in institutional digital asset infrastructure, have announced their collaboration to enhance their existing networks for settling transactions outside of traditional exchanges.

This collaboration between BitGo’s Go Network and Copper’s ClearLoop is set to foster the global expansion of institutional market participation, as well as the reduction of risks associated with trading market infrastructure.

Through this partnership, international institutional clients can anticipate several key advantages. Firstly, they will gain the ability to trade on major global exchanges, all the while ensuring that their assets remain securely held within a regulated custody environment.

Additionally, this collaboration will provide an institutional environment that encourages users to participate in a novel standard of digital asset infrastructure, thereby challenging the conventional practice of directly holding assets on individual exchanges.

Importantly, the partnership also offers protection against bankruptcy through the utilization of both BitGo Go Network wallets and the Copper ClearLoop trust structure, which is governed by English law.

Mike Belshe, the CEO of BitGo, said, “BitGo and Copper are coming together to solve a critical missing component of market infrastructure which has plagued the industry for years and contributed to a series of market events, such as the collapse of FTX, Mt Gox, Coincheck, and others. With these settlement networks, we’re finally able to settle assets safely and securely without direct exposure to exchanges. With BitGo joining the ClearLoop network, BitGo’s users’ funds never leave its regulated custody”.

As the industry progresses and institutional adoption increases, Copper is adopting some of the proven best practices from conventional financial markets to meet the growing demand from clients to diversify counterparty risks and satisfy the growing demands of investors. Since 2020, Copper's off-exchange settlement solution, ClearLoop, has been mitigating counterparty risks in collaboration with exchanges and prime brokers, and now in partnership with BitGo.

Dmitry Tokarev, CEO at Copper.co, stated, “Together with BitGo we are working to provide safe and reliable custody and trading services for institutional investors outside of the US. Copper is proud to collaborate with leaders like BitGo, to keep developing the most trustworthy and responsible financial market infrastructure, showing our dedication to the long-term success of the digital asset ecosystem.”

Leon Marshall, chief executive of Europe at Galaxy, said “We welcome Go Network’s expansion of capabilities and digital asset market infrastructure during a time of heightened interest and adoption by institutional investors. The bifurcation of qualified custody and global exchange access offers investors greater risk mitigation, capital efficiency, and liquidity, helping to deepen access to the digital asset market.”

By combining the capabilities of BitGo's Go Network and Copper's ClearLoop, the partnership is set to establish a more robust and efficient framework for the management of digital assets, ultimately fostering greater trust and reliability within the digital asset ecosystem.

This collaborative effort signifies a significant step forward in the industry, highlighting the commitment of both BitGo and Copper to revolutionize and establish a more resilient and secure infrastructure for the evolving digital asset landscape.