FTX crypto exchange integrates institutional trading tool ClearLoop

FTX has inked a deal with Copper that could enable access to crypto trading products for over 300 institutional asset managers via the ClearLoop settlement platform.

FTX has become the latest crypto exchange service to join ClearLoop — an instant trading settlement infrastructure from Brevan Howard-backed Copper.co.

As part of the integration, Copper’s over 300 institutional asset managers will be able to access FTX crypto offerings such as cryptocurrency futures, options, volatility markets, as well as tokenized stocks among others.

At over one million registered users and more than $600 billion in trading volume per month, FTX is the largest crypto exchange to join the ClearLoop platform, according to the Copper announcement on Tuesday.

With Deribit and Bitfinex also part of ClearLoop, Copper’s institutional clients can now move funds among the largest crypto options, spot and derivatives exchanges in the market.

According to Copper, ClearLoop offers secure crypto trading via an offline custody solution with asset managers able to trade fund balances on exchange platforms. Thus, Copper’s clients are able to hold on to their digital assets until a successful trade execution occurs, a feature the company says helps to minimize counterparty risk.

Back in July 2020, Copper integrated with Signet, the blockchain payment platform created by Signature Bank, enabling instant payment and settlement for its clients in U.S. dollars and other fiat currencies.

FTX CEO Sam Bankman-Fried said that custody remains a major part of the conversation concerning institutional involvement in crypto. Indeed, the announcement quoted Bankman-Fried saying the collaboration with Copper will help FTX “stay ahead of the pack.”

As previously reported by Cointelegraph, Copper received $25 million in an extension funding round led by Brevan Howard, the asset management firm co-founded by billionaire hedge fund manager Alan Howard.

Institutional interest in the crypto space remains unabated even with the recent price struggle for cryptocurrencies. Indeed, several reports suggest that big-money players are pursuing significant exposure to virtual currencies in the expectation of another bull run before the end of 2021.