Coinbase Teams Up with Copper for Smarter Crypto Trading
Boosting Trading Efficiency with Innovative Collaboration
In a bid to fulfill the rising demand for more streamlined and secure trading solutions, Coinbase International Exchange has joined forces with Copper’s ClearLoop network. The partnership, unveiled on Thursday, gives institutional clients a brand new strategy to handle their trades, allowing for off-exchange settlement without the trouble of transferring funds onto the exchange. This development, highlighted in a press release shared with Cointelegraph, guarantees near real-time trade settlements while managing collateral more efficiently.
Aiming to Tackle Key Institutional Concerns
This collaboration is not just about convenience; it is a strategic move to mitigate counterparty risk and enhance capital efficiency—two pressing issues for large-scale institutional crypto traders. Ethena, renowned for its stablecoin protocol that gives protection for USDe, is on board as a day-one launch partner for this integration.
“Institutions are seeking this kind of functionality and adaptability,” a Coinbase representative explained to Cointelegraph. “ClearLoop offers a significant leap forward in off-exchange settlement times for those leveraging Coinbase International Exchange, improving the experience of collateral management, minimizing counterparty risk, and boosting capital efficiency.”
Starting with USDC and Looking Forward
The initial phase of this integration, regulated by the Bermuda Monetary Authority, is exclusively available with USDC. However, Coinbase has plans to broaden support to incorporate more collateral assets soon.
Developed by Copper, a London-based firm, ClearLoop employs cutting-edge multiparty computation (MPC) technology. This allows clients to trade using virtual balances on centralized exchanges while actual settlements are handled by Copper’s infrastructure, thereby reducing the need to maintain substantial assets on exchanges.
What the Experts Are Saying
“This major integration with Coinbase International Exchange opens up faster, more secure off-exchange trading and settlement to institutional clients,” remarked Amar Kuchinad, Copper’s global CEO. “It’s a significant step forward in maturing the digital assets industry.”
Since its launch in 2023, Coinbase International Exchange has made a reputation for itself in the worldwide crypto derivatives market, with over 150 listed assets and leverage options as much as 20x. By joining ClearLoop’s expanding network, which already counts Deribit, Bybit, OKX, and Bitfinex amongst its members, Coinbase is reinforcing its position as a key player.
Institutional Appetite for Crypto is Growing
According to a March survey conducted by Coinbase and EY-Parthenon, a whopping 83% of institutional investors are planning to extend their crypto holdings by 2025. Many are diversifying beyond Bitcoin (BTC) and Ether (ETH), with XRP (XRP) and Solana (SOL) emerging as top decisions.
Furthermore, a May report from Fireblocks highlighted that 90% of institutional players are currently using or considering stablecoins, with nearly half of them already utilizing these digital assets for payments.
