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The ClearLoop integration with OKX enables the institutional users of both companies to keep assets within Copper's infrastructure while simultaneously delegating those assets to trade on OKX.
April 03, 2023 - Digital asset custody provider Copper.co has partnered with OKX, the world’s second-largest crypto exchange by trading volume, to bring off-exchange settlements to institutional customers using Copper's ClearLoop technology.
The ClearLoop integration with OKX enables the institutional users of both companies to keep assets within Copper's infrastructure while simultaneously delegating those assets to trade on OKX. Client assets are deposited on the Copper platform and then linked to an OKX account. The OKX account instantly mirrors this balance and allows active trading across OKX's 700+ spot and derivatives markets. Differences in balance between the two accounts are settled automatically via API.
The collaboration is especially significant for large-scale institutional digital asset traders who seek alternative ways to hold assets as well as immediate access to OKX's highly liquid markets and advanced trading tools. The integration has been extensively tested by institutional clients and is now generally available.
With its integration with Copper's award-winning multi-party computation (MPC) custody, ClearLoop enables clients to trade securely across top-tier execution venues such as OKX, while mitigating exchange counterparty risk and increasing capital efficiency.
“The advantages of using OKX along with Copper’s ClearLoop are abundantly clear,” commented Alessandro Balata, Portfolio Manager at Fasanara Capital. “We’re now able to access greater amounts of liquidity across a growing number of exchanges that are joining Copper’s ClearLoop network. We have tremendous flexibility to move and manage our assets all while remaining within Copper’s secure custody. ClearLoop has become a critical component in helping institutional investors mitigate exchange counterparty risk.”
To address the insolvency risk of any ClearLoop participant, Copper has established a new account structure dedicated to ClearLoop over which an English law trust is created. Copper is appointed as security trustee and holds the assets on behalf of the beneficiaries. Clients and exchanges grant security interests over their assets within the trust in favour of each other. Within the trust, the exchange posts sufficient collateral to facilitate settlement per the pre-determined settlement schedule. The collateral is monitored 24/7 by Copper’s financial risk team giving both clients and exchanges comfort that settlement obligations will be met. If Copper were to become insolvent, the crypto assets held on trust would not form part of Copper’s insolvent estate.
The addition of OKX to the list of exchanges integrated with ClearLoop provides institutions with the broadest coverage by volume in the market today. Dmitry Tokarev, CEO at Copper, commented: “The continual inflow of institutional volume to Copper’s ClearLoop demonstrates the industry’s drive to meet high standards for asset security and trading. OKX is an essential trading venue for institutional investors, who will now be able to manage their assets efficiently thanks to the ClearLoop integration.”
