Crypto exchange FTX has integrated ClearLoop, a trading tool from infrastructure provider Copper.
- Copper introduced ClearLoop last year to remove the need for traders to deposit digital assets with an exchange in a hot wallet before being able to trade, a requirement that raised concerns the assets would be vulnerable to hacks.
- ClearLoop allows institutional investors to hold on to assets until just before a trade is executed.
- The integration will allow Copper's client base of more than 300 institutional asset managers to trade FTX products with funds secured by Copper, according to an emailed announcement Tuesday.
- Clients are able to retain their trading capital, either in a cold wallet or a custodial solution, while trades are initiated. ClearLoop transfers the assets to the buyer through an exchange once the trade has been completed.
- The co-founder of FTX, Sam Bankman-Fried, said integration will enable the exchange to "stay ahead of the pack" through a "reduced level of counterparty risk required by many institutions."
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.