Copper crypto custody and ClearLoop
A fund that trades crypto on an exchange usually has to move its assets onto that exchange first, and carries the exchange's risk while they sit there. Copper keeps the assets in custody and settles the trades off the exchange through its ClearLoop network. Copper describes itself as infrastructure that helps banks, asset managers, trading firms, exchanges and ETP providers custody, settle and move digital assets.
ClearLoop: off-exchange settlement
ClearLoop lets a client trade on a connected exchange while the collateral stays with Copper; the trades are netted and settled in one step under pre-agreed operating rules. Copper says the network improves capital efficiency and reduces counterparty exposure, and lists Coinbase International Exchange, OKX, Bybit, Deribit, Kraken MTF, Bitfinex, Gate.io and Bitget as connected venues, with LTP, BitGo and FalconX as connected custodians and prime brokers. On its home page Copper gives three figures: 60 million monthly trades backed by collateral held at Copper, 105 billion US dollars of monthly notional trading volume supported by ClearLoop-protected collateral, and 3 billion US dollars of monthly off-exchange settlements.
For a bank's risk team the point is the split of roles: the exchange holds no client assets, so an exchange failure does not take the client's coins with it. Crypto prime brokerage explains this model next to prime brokers, and settlement finality covers when a settled trade can no longer be reversed.
Copper's custody
Copper launched in London with custody based on multi-party computation, designed for institutions; in its words, its MPC technology ensures that no complete private key is ever created. Copper is the trading name of Copper Markets (Switzerland) AG, with its registered office in Zug, and is registered as a financial intermediary with the VQF, a self-regulatory organization authorized by FINMA, as its company page states. Clients it names include Brevan Howard, Flow Traders and 21Shares. In the US, State Street partnered with Copper for crypto custody for its institutional clients, Bloomberg reported. MPC wallet explains how such a key works.
Upcoming digital asset and custody events
Custody and settlement at Finance Loop
Custody is a topic of Finance Loop's own Digital Finance Night for banks, asset managers and regulated service providers. Market infrastructure and custody are on the program of the Crypto Assets Conference in Frankfurt, which Finance Loop partnered with.
Investment & Digital Assets
Risk & Compliance
What is Copper ClearLoop?
ClearLoop is Copper's off-exchange settlement network. A client trades on a connected exchange while its assets stay in custody at Copper, and the trades are settled between custody and exchange in one net step.
Where is Copper based?
Copper is the trading name of Copper Markets (Switzerland) AG in Zug. It launched in London.
How does Copper hold the keys?
Copper uses multi-party computation: the private key exists only as shares, and Copper states that no complete private key is ever created.
Settlement and trading
Custody technology firms
Copper and Finance Loop
Finance Loop covers custody and settlement at its Digital Finance Night and through its partnership with the Crypto Assets Conference. Custody and off-exchange settlement belong to Finance Loop's Investment & Digital Assets track.
Finance Loop is a professional network and has the goal of driving the adoption of emerging technologies in finance, such as AI, digital payments, cloud and blockchain solutions. Finance Loop helps its members build skills and personal networks in these fields: Investment & Digital Assets, Payments & Digital Money, Digital Infrastructure & Sovereignty, and Risk & Compliance.