BitGo and Copper Launch Secure Trading Solution on Deribit

BitGo and Copper have joined forces to introduce a groundbreaking trading solution on Deribit, featuring off-exchange settlement. This partnership aims to enhance the security and efficiency of trading spot and derivatives by integrating BitGo’s qualified custody and Copper’s ClearLoop technology.

• BitGo and Copper introduce trading solution on Deribit
• Off-exchange settlement enhances asset security
• BitGo’s OTC desk supports over 250 assets
• BitGo explores IPO, exceeds $100 billion in assets under custody

This new trading solution allows clients to execute trades on Deribit while keeping their assets secure off-exchange. Off-exchange settlement means that assets are not held on the exchange during trading, reducing the risk of exchange hacks. By integrating qualified custody from BitGo, which holds over $100 billion in assets, and ClearLoop from Copper, which facilitates seamless settlement, the partnership offers a robust trading environment. “Holding assets in qualified custody and settling through ClearLoop’s tried and tested settlement process delivers what the market has been asking for—a seamless and secure way to trade,” said Brett Reeves, head of Go Network at BitGo.

BitGo’s recent initiatives showcase its commitment to advancing the crypto trading landscape. Earlier this year, the company launched a global over-the-counter (OTC) trading desk, catering to institutional clients and supporting over 250 digital assets. This desk has facilitated billions in trading volume, reflecting the surging demand for institutional crypto trading, which increased by 106% in 2024. Matt Ballensweig, managing director at BitGo, emphasized the OTC desk’s role in providing a full-service trading experience within BitGo’s secure framework, minimizing prefunding risks and ensuring instant settlement.

BitGo’s exploration of an initial public offering (IPO) in late 2025 signals its ambition to solidify its position in the crypto custody sector. This move could place BitGo alongside other major players like Circle and Kraken, highlighting the growing mainstream acceptance of cryptocurrencies. However, pursuing an IPO in a volatile market presents potential risks, such as regulatory scrutiny and market fluctuations.

Copper’s role in this partnership is crucial. Ben Lorente, director of strategic alliances at Copper, highlighted the collaboration’s potential to enhance market interoperability. “Launching the new model in partnership with BitGo represents a significant step toward greater interoperability in the market,” Lorente stated, emphasizing the shared vision of improving trading security and efficiency.

The crypto industry’s focus on security and institutional adoption is evident, and this partnership between BitGo and Copper exemplifies these trends. By offering a trading solution with off-exchange settlement, they address the needs of traders who demand both security and efficiency. As BitGo continues to expand its offerings and explore new avenues like an IPO, it reinforces its role as a leader in the evolving cryptocurrency market. However, it’s worth noting that while this solution promises enhanced security, its adoption may face barriers such as regulatory hurdles and the need for broader market acceptance.

What This Means for the Average Crypto User

For the average crypto user, this partnership means safer trading options. With assets held off-exchange during trading, you’re less vulnerable to the hacks that have plagued centralized exchanges. It’s like having a bodyguard for your Bitcoin while you trade—keeping it safe until the deal is done.

Challenges and Criticisms

While the new trading solution brings significant benefits, it’s not without its challenges. Regulatory environments are constantly evolving, and ensuring compliance across different jurisdictions can be complex. Additionally, the adoption of off-exchange settlement may face resistance from traders accustomed to traditional on-exchange trading. Critics might argue that the solution’s success depends heavily on widespread acceptance, which can be slow to achieve in the dynamic crypto market.

Impact on the Crypto Market

This partnership is a game-changer for the crypto market. It not only enhances security but also sets a new standard for trading efficiency. By supporting institutional adoption, BitGo and Copper are paving the way for more sophisticated trading mechanisms. This could lead to increased liquidity and capital efficiency, potentially influencing competitors to follow suit and shaping future industry standards.

Key Takeaways and Questions

• What is the new trading solution offered by BitGo and Copper?

  The solution allows clients to trade spot and derivatives on Deribit with off-exchange settlement, using BitGo’s qualified custody and Copper’s ClearLoop technology.

• How does the new trading solution benefit traders?

  It provides enhanced asset security, integrated liquidity, capital efficiency, and qualified custody, allowing traders to trade securely and efficiently.

• What recent initiatives has BitGo announced?

  BitGo launched a global OTC trading desk for institutions and is considering an initial public offering.

• What is the significance of BitGo surpassing $100 billion in assets under custody?

  It reinforces BitGo’s position as a leading custodian in the cryptocurrency market, showcasing its growth and trust among clients.

• How does this partnership impact institutional adoption of cryptocurrency?

  The partnership aims to support institutional adoption by providing a secure and efficient trading environment, which is crucial for institutional investors.