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."

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