Bitfinex, a token trading platform, and Copper.co, a digital asset infrastructure provider (through third party banking partners), have announced the integration of ClearLoop, Copper’s instant off-exchange settlement and clearing network.
Copper’s segregated custodian account provides institutional grade custody thereby mitigating counterparty risk and reducing deposit and withdrawal waiting time. The solution removes the need for institutional customers to move digital tokens from a secure cold wallet into an exchange’s hot wallet, a process that can often take between 10 minutes to one hour. These delays are exacerbated when factoring in withdrawals and post-trade settlement. ClearLoop has the stated aim of eliminating these outdated processes by enabling off-exchange settlement that it says can be delivered in less than one second.
Bitfinex’s integration of ClearLoop will facilitate the full spectrum of trading strategies among its growing number of customers from the institutional space. As a cryptocurrency exchange offering capital markets grade trading infrastructure, Bitfinex is at the forefront of offering state-of-the-art services such as the provision of algorithmic trading.
“Our platform’s relationship with Copper is driving uptake of digital token trading among hedge fund and asset managers worldwide, transforming how institutional customers engage with digital tokens, by providing market-leading custody and trading solutions,” said Paolo Ardoino, CTO at Bitfinex.
“We are proud to have Bitfinex as a key partner in ClearLoop, Copper’s instant off-exchange settlement and clearing network,” said Alex Ryvkin, CPO at Copper.“As the efficiency of crypto-markets improves and regulatory standards evolve, the institutional investment space gets more and more competitive. To keep winning, asset managers will have to prioritize infrastructure that is able to facilitate the full spectrum of traditional strategies, and beyond, alleviating some of the most common risks associated with the crypto space.”
Copper aims to bridge the gap between conventional financial markets and digital token infrastructure. Copper caters to the needs of some of the most sophisticated institutions in the world that are now entering the space, according to Mr. Ryvkin.
While offering exchange connectivity via clunky web servers is still commonplace in the nascent crypto space, Bitfinex has collaborated with Zug-based infrastructure provider Market Synergy to offer institutional standard cryptocurrency connectivity. High frequency trading firms seeking exposure to crypto can obtain connectivity via an FIX feed or ISP link to Bitfinex’s digital asset gateway.
Bitfinex is leveraging its position as one-stop shop for crypto trading offering a variety of services, including margin trading with up to 5x leverage and derivatives products including a perpetual swap contract offering 100x leverage.