Kraken MTF, the UK's first Financial Conduct Authority (FCA)-authorized crypto derivatives trading venue in Europe, has announced a strategic partnership with Copper, a firm specializing in digital asset custody, collateral management, and prime services. The collaboration aims to offer off-venue settlement services tailored for institutional clients.

Multi-Exchange Connectivity

Institutional investors require robust multi-exchange connectivity to mitigate risks, improve price discovery, and access liquidity efficiently. Copper's ClearLoop solution facilitates this connectivity by allowing clients to manage funds and trade virtual balances across exchanges, with settlements conducted on Copper's infrastructure.

Through ClearLoop, institutional clients can now trade on Kraken MTF, a venue known for its round-the-clock crypto derivatives trading capabilities. This integration empowers institutions to manage risk effectively and hedge positions in a derivatives market that operates continuously throughout the year.

Mark Jennings, CEO of Kraken MTF, said: “For the past few years, volumes in crypto derivatives have regularly exceeded those seen in the spot market and institutions are driving most of this new activity. Key infrastructure developments, like the Kraken MTF integration with ClearLoop, will form the baseline as institutional engagement in this asset-class continues to increase."

Boosting Efficiency for Institutional Investors

Kraken acquired Crypto Facilities in 2019, rebranding it as Kraken MTF, which now serves as a key partner for institutions seeking exposure to digital asset prices. As a multilateral trading facility, Kraken MTF meets all regulatory and compliance standards required by institutional investors.

ClearLoop enhances capital efficiency for institutional investors by enabling instant asset delegation, optimizing collateral management, and simplifying operational workflows. Moreover, the direct settlement on Copper’s infrastructure bypasses blockchain-level settlements and associated network fees, offering cost savings to investors.

ClearLoop currently supports nine live exchanges, including Kraken MTF, OKX, BYBIT, Deribit, BIT, Gate.io, BITFINEX, Bitget, and PowerTrade, with plans to integrate Bitstamp and Bitmart in the near future.

Dmitry Tokarev, CEO at Copper.co commented, “Together, we are shaping the future of financial market infrastructure by revolutionising liquidity and security for institutional clients. Our shared vision is to build a resilient and innovative ecosystem that sets new standards. Copper is excited to embark on this transformative journey alongside the Kraken team.”