London-based cryptocurrency infrastructure provider Copper has announced the launch of ClearLoop, a tool for investors to instantly settle crypto trades off-exchange.
The ClearLoop application programming interface (API) has already been integrated into popular crypto options exchange Deribit, in addition to five further exchanges including AAX, Bitfinex, CoinPass, Deversifi, and Xena.
The platform will act as a solution for asset managers who want to move their cryptocurrency in or out of exchanges from cold wallets, which typically takes at least 30 minutes for a confirmation on the blockchain to go through.
ClearLoop enables traders execute significantly higher volumes per transaction instantly by ensuring that both the client and the exchange have enough assets allocated to cover any position submitted by a trader before it is opened.
All assets under Copper’s client segregated custody and traded through ClearLoop are protected with award-winning multi-party computation (MPC) wallets. Copper’s clients are also covered by a full crypto crime insurance policy, provided by A+ rated insurers.
We're announcing our integration with ClearLoop by @CopperHQ!
An integrated external custody solution that offers off-exchange settlement is a game-changer for bringing institutions into crypto!
— Deribit (@DeribitExchange) May 14, 2020
“We are very pleased to see Copper and Deribit partnering to introduce ClearLoop which will enable us to mitigate settlement risks and eliminate confirmations-related delays, thus boosting capital efficiency and taking advantage of a greater variety of trading opportunities.” Said Anatoly Crachilov, CEO of Nickel Digital Asset Management.
“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.” Commented John Jansen, co-founder and CEO of Deribit.
“The crypto derivatives market is characterised by high leverage, significant volatility, and complex market structure. Collateral should be able to move fast, cheap, and frictionless and, if possible, without Blockchain network congestion.
“Reducing settlement time for transfers to a few milliseconds without Blockchain network dependency (instant confirmation) and offering enhanced security measures, will reduce risk significantly and will improve the way asset managers trade and manage capital.”