Cryptocurrency custody service providers BitGo and Copper are merging their settlement networks to facilitate trading across a variety of major exchanges while maintaining the security of assets in cold storage. This integration combines the reach of BitGo’s Go Network with Copper’s ClearLoop system, covering exchanges such as Bybit, OKX, Powertrade, Bitget, Gate.io, Deribit, BIT, Bitfinex, and Bitstamp.
The collaboration aims to establish an institutional-grade infrastructure that can compete with traditional finance institutions while providing scale and a regulated custody solution, especially important in the wake of collapses like that of FTX. The synergy also simplifies operations for exchanges by reducing the need for multiple custodian integrations.
BitGo, recognized as a qualified custodian in the U.S., has recently secured a German crypto custody license from the financial watchdog BaFin. Conversely, Copper has wound down its enterprise custody service to concentrate on enhancing the ClearLoop settlement network, serving a broad institutional clientele since 2020.
The expanded settlement network is targeting international clients initially, with plans to extend services to U.S. users. Matthew Ballensweig from BitGo noted that integration with U.S. exchanges like Bitstamp is underway, with further U.S.-based exchanges in discussions. The goal is to create dual pathways, one international via Copper’s ClearLoop API and one domestic through BitGo, each connecting to relevant exchanges.