BitGo and Copper have unveiled a groundbreaking trading solution that enables clients to trade on the crypto derivatives exchange Deribit while maintaining off-exchange custody and settlement. This innovative collaboration, announced on February 20, 2025, represents a significant advancement in the digital asset trading landscape, particularly for institutional investors.
A First-of-Its-Kind Solution
The partnership between BitGo, a leading digital asset custodian, and Copper, a collateral management platform, introduces a “first-of-its-kind” trading and settlement solution. Users can now trade on Deribit’s options and futures trading features without the need to pre-fund their strategies. This is achieved by securing assets off-exchange in qualified custody with BitGo Trust, while trades are automatically settled through Copper’s ClearLoop and BitGo’s Go Network infrastructure.
Deribit’s integration via ClearLoop into the Go Network allows for increased capital efficiency. By holding assets with BitGo Trust, investors can engage in trading activities without the traditional constraints associated with pre-funding. This new approach addresses the pressing need for deep liquidity in the market without compromising security or operational agility.
Enhancing Security and Efficiency
The launch of this off-exchange settlement capability is particularly timely given the heightened concerns around security in the cryptocurrency space. The collapse of major platforms like FTX has underscored the risks associated with holding assets directly on exchanges. With this new solution, clients can trade spot and derivatives on Deribit while keeping their assets securely off-exchange.
“Off-exchange settlement now live,” Deribit announced on social media. The firm emphasized that this new capability ensures seamless and automatic settlement for clients of BitGo’s Go Network and Copper’s ClearLoop. Luuk Strijers, CEO of Deribit, expressed excitement about the collaboration, stating that it represents a significant step forward for both the market and investors.
Addressing Market Needs
Brett Reeves, Head of Go Network at BitGo, highlighted the transformative nature of this partnership: “Our partnership with Copper represents a fundamental shift in how investors can access exchanges.” He noted that holding assets in qualified custody while settling through ClearLoop’s established process delivers a seamless and secure trading experience that the market has been demanding.
This collaboration not only enhances security but also improves operational efficiency for institutional traders. By minimizing counterparty risk and reducing exposure to exchange vulnerabilities, BitGo and Copper are setting a new standard for how digital assets can be traded safely.
Future Implications
As institutional interest in cryptocurrency continues to grow, this partnership positions BitGo and Copper as leaders in providing secure trading solutions. The integration of their respective networks allows users to access a wide range of exchanges while keeping their assets protected within a regulated custody environment.
The benefits extend beyond just security; they also include enhanced liquidity and capital efficiency for traders. By allowing trades to be executed without moving assets out of custody, this model could attract more institutional participants into the crypto market.
Conclusion
The collaboration between BitGo and Copper to enable off-exchange custody and settlement on Deribit marks a pivotal moment in the evolution of digital asset trading. By addressing critical issues related to security and operational efficiency, they are paving the way for broader institutional adoption of cryptocurrencies.
As more investors seek reliable ways to engage with digital assets without exposing themselves to unnecessary risks, solutions like those offered by BitGo and Copper will likely become increasingly important. The future of crypto trading looks promising as these firms continue to innovate and enhance the infrastructure supporting this dynamic market.
