BitGo and Copper enable clients to trade on Deribit with off-exchange custody and settlement

Digital asset infrastructure provider BitGo and collateral management platform Copper have enabled clients to trade on Deribit while retaining off-exchange custody and settlement.

In what the firms describe as a "first-of-its-kind" trading and settlement solution, users can trade on the crypto derivatives exchange while their assets are secured off-exchange in qualified custody with BitGo Trust, with trades automatically settled via Copper’s ClearLoop and BitGo's Go Network infrastructure

Deribit's integration via ClearLoop into the Go Network allows investors to benefit from increased capital efficiency by holding assets with BitGo Trust and utilizing Deribit's options and futures trading features without pre-funding their strategies. The launch aims to address the need for deep liquidity without compromising security or operational agility, the firms said in a statement on Thursday.

"Off-exchange settlement now live," Deribit posted on X. "Clients of BitGo's Go Network and Copper's ClearLoop can now trade spot and derivatives on Deribit while keeping assets securely off-exchange in qualified custody, ensuring seamless and automatic settlement."

"This collaboration marks a significant step forward for the market and investors alike and we’re excited to be at the forefront of it with BitGo and Copper," Deribit CEO Luuk Strijers added. "The synergies between our companies will unlock new opportunities for investors and will completely change the landscape of trading."

BitGo and Copper first announced their off-exchange custody and settlement plans in November 2023, with traders post-FTX debacle looking to reduce the risk of holding assets on crypto trading platforms.

"Our partnership with Copper represents a fundamental shift in how investors can access exchanges," said Brett Reeves, Head of Go Network. "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."