Coinbase and Copper Partner to Offer Secure Off-Exchange Settlement for Institutions
Coinbase has teamed up with Copper to provide institutional clients with off-exchange settlement services through ClearLoop. This collaboration addresses the growing demand for secure and efficient trading infrastructure in the cryptocurrency market.
ClearLoop: A Game-Changer for Institutional Crypto Trading
Developed by Copper, ClearLoop leverages multiparty computation (MPC) technology. It allows institutions to trade on centralized exchanges while settlements occur on Copper’s infrastructure. This approach minimizes the need to hold large amounts of assets on exchanges, reducing counterparty risk and enhancing capital efficiency.
Key Advantages for Institutional Clients
- Near real-time settlement without transferring funds to exchanges
- Lower counterparty risk and improved capital efficiency
- Initial support for USDC, with plans to expand to other collateral assets
Regulatory Oversight and Future Developments
The integration is regulated by the Bermuda Monetary Authority. Coinbase has announced plans to support additional collateral assets, further broadening access for institutional participants.
Growing Institutional Interest in Cryptocurrencies
A recent survey by Coinbase and EY-Parthenon revealed that 83% of institutional investors plan to increase their cryptocurrency holdings by 2025. This trend underscores the importance of developing infrastructure that meets the needs of institutional players.
“This integration represents a significant milestone in the maturation of digital asset markets,” said Amar Kuchinard, CEO of Copper.
