BitGo and Copper Partner for Off-Exchange Settlements on Deribit
Qualified cryptocurrency custodians BitGo and Copper, known for the ClearLoop settlement system, have announced off-exchange settlements for traders on the Deribit options exchange.
Clients of both BitGo and Copper can trade spot and derivatives on Deribit while securely storing assets off-exchange with BitGo Trust. Settlements are automated using Copper ClearLoop and the Go Network, as mentioned in a press release.
In the aftermath of the FTX collapse, traders are keen on mitigating risks linked to holding assets on exchanges. BitGo and Copper previously teamed up to facilitate trading while ensuring assets are maintained in a regulated custody environment.
A major feature of the collaboration is delivery versus payment (DvP), allowing clients to instantly settle transactions without needing to move assets on-chain, according to Brett Reeves, head of BitGo’s Go Network.
“We can execute DvP settlements from cold storage with no fees,” Reeves told CoinDesk. “Our goal is to eliminate settlement risk and adapt to traditional finance norms.”
In practice, assets are stored securely at BitGo, and during set settlement times, any owed assets to Deribit are transferred from BitGo to the Copper ecosystem. Conversely, assets owed to clients return to BitGo.
“The majority of clients’ assets stay in BitGo custody except during settlement periods when they briefly move to the exchange,” said Reeves, explaining that this corresponds to the client’s profits and losses or margin variations.
Luuk Strijers, CEO of Deribit, remarked, “The synergies between our companies will unlock new opportunities for investors and fundamentally change the trading landscape.”
Comments (0)