Institutional interest in the crypto market still looks good, to meet these needs FTX has partnered and integrated its platform with ClearLoop’s settlement trading network, Copper.co, which will allow it to gain new access to institutional funds.
ClearLoop allows institutional investors to hold on to assets until before the trade is executed. FTX, which handled $600 billion in trading volume in May, is the largest exchange to join the company.
Cooper introduced ClearLoop last year to eliminate the need for merchants to deposit digital assets with exchanges in hot wallets before being able to trade which had long been considered vulnerable to hacking.
Cooper’s clients can maintain their trading capital, either in a cold wallet or a custodial solution, when trading is initiated. ClearLoop transfers the asset to the buyer via the exchange after the trade is completed.
Copper’s clients of over 300 institutional asset managers can now trade FTX products including derivatives, options and stock tokens with their funds secured on the Copper platform. Cooper offers custody, primary brokerage and settlement services across 250 digital assets and more than 40 exchanges.
Integration with Cooper Brings FTX to the Forefront
Sam Bankman-Fried, said the integration would allow exchanges to “stay ahead” through “reducing the level of counterparty risk required by many institutions.”
“Using a custodian is something we have heard time and time again for institutions to trade crypto. A lot of people will want to use some kind of custodial network,” said Sam Bankman Fried.
The cryptocurrency space has matured significantly in recent years, with institutional adoption as the main narrative. Well-known market participants such as Paul Tudor Jones, Stan Druckenmiller, Bill Miller and Anthony Scaramucci have advocated buying into Bitcoin in particular, the largest and genuine cryptocurrency. At the same time, regulatory uncertainty, volatility, and ease of use have kept many investors from jumping into crypto.
Deals like these, which help facilitate the connection between institutions and crypto products, can make it easier even though the crypto market is now looking stagnant as Bitcoin has yet to make an impressive comeback after dropping from its near-$65,000 high.