Deribit Integrates Copper’s New Custody with Off-Exchange Settlement

Deribit, the leading crypto margin trading Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term, has fully integrated ClearLoop, the newly launched digital currency custodian platform by London-based Copper.

According to Thursday's announcement, this integration will be beneficial to the institutional traders who usually move their holdings from the crypto exchanges to much secure custodian services or cold wallets.

ClearLoop settles digital currency transactions off-exchange, thus eliminating the settlement delay due to the Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term network congestion.

Copper is claiming that ClearLoop will reduce the settlement time from 30-40 minutes to merely 100 milliseconds.

The platform achieves this by ensuring that both the client and the exchange have enough assets to cover before the opening of any position and then instantly settles between the parties when the trade is closed.

“We worked with asset managers and exchanges for over a year to develop a solution to the three key market issues,” Dmitry Tokarev, founder and CEO of Copper, added. “ClearLoop, the fruit of this collaboration, allows investors to settle trades instantly, keeps their assets secure and insured in third-party custody, removing concerns about self-custody, all the while eliminating counterparty risk and the associated limitations with volume.”

Security and access, both are priorities

Citing the major dip in the crypto market the companies are also pointing out the need for such instant settlement services, especially for derivatives trading, which enables traders to react to the market changes in a faster way.

“Integration with ClearLoop is a natural next step for Deribit, as it could potentially solve some of the most critical issues faced by the derivatives market,” John Jansen, co-founder and CEO of Deribit. Said.

Other cryptocurrency exchanges are also taping custodian services to lure institutions on their platform. Recently, Bitfinex tapped Koine to integrate similar custody solutions.