Coinbase Integrates Copper’s ClearLoop for Instant Institutional Settlements

Coinbase International Exchange has integrated with Copper’s ClearLoop network to offer institutional clients access to off-exchange settlement, driven by high demand for more efficient and secure trading infrastructure. This collaboration, announced recently, allows institutions to manage collateral and settle trades in near real-time without moving funds onto the exchange. The move aims to reduce counterparty risk and boost capital efficiency, two major concerns for institutional crypto participants operating at scale. Ethena, a stablecoin protocol known for its role in hedging USDe, has been named a day-one launch partner for the integration.

“Institutions want this functionality and flexibility because ClearLoop enables a jumpstep in the off-exchange settlement times for institutions using Coinbase International Exchange,” a Coinbase spokesperson stated. “This improves the user experience of managing collateral, reducing counterparty risk and improving capital efficiency.”

The integration is regulated under the Bermuda Monetary Authority and is currently available exclusively with USDC. Coinbase plans to support additional collateral assets in the near future. ClearLoop, developed by London-based Copper, uses multiparty computation (MPC) technology to allow clients to trade virtual balances on centralized exchanges while settlement occurs on Copper’s infrastructure, reducing the need to hold large amounts of assets on exchanges.

“This significant integration with Coinbase International Exchange expands institutional access to rapid, secure off-exchange trading and settlement,” said Amar Kuchinard, global CEO of Copper. “This is a milestone in the development of a mature digital assets industry.”

Coinbase International Exchange, launched in 2023, has become a key player in global crypto derivatives, offering more than 150 listed assets and up to 20x leverage. The exchange joins ClearLoop’s growing network, which already includes several major players in the crypto industry.

“Institutional clients demand both security and agility when managing digital assets,” said Marc Zeitouni, CEO of Coinbase International Exchange. This move by Coinbase is a strategic response to the growing demand from institutional investors for secure and efficient crypto trading solutions. The integration of ClearLoop allows institutions to settle trades off-exchange, providing an additional layer of security and flexibility.

The partnership with Copper is a strategic move by Coinbase to enhance its institutional offerings. ClearLoop, a settlement solution developed by Copper, enables institutions to manage their crypto assets more effectively by facilitating off-exchange settlements. This means that institutions can transfer assets directly between their own wallets without the need for intermediaries, reducing counterparty risk and enhancing security.

The demand for such services has been driven by the increasing interest of institutional investors in the cryptocurrency market. As more traditional financial institutions and hedge funds enter the crypto space, there is a growing need for solutions that can handle large-scale transactions securely and efficiently. Coinbase's move to offer off-exchange settlement is a response to this demand, positioning the exchange as a preferred partner for institutional investors.

The integration of ClearLoop also aligns with Coinbase's broader strategy of expanding its institutional services. The exchange has been actively working to attract more institutional clients by offering a range of products and services tailored to their needs. This includes custody solutions, trading platforms, and now, off-exchange settlement. By providing these services, Coinbase aims to become a one-stop-shop for institutional investors looking to enter the crypto market.

The partnership with Copper is expected to further strengthen Coinbase's position in the institutional market. Copper is a well-known provider of digital asset custody and settlement solutions, with a strong track record in the industry. By leveraging Copper's technology, Coinbase can offer its institutional clients a more robust and secure settlement solution, further enhancing its competitive edge.

In summary, Coinbase's partnership with Copper to offer off-exchange settlement via ClearLoop is a significant development in the institutional crypto market. It addresses the growing demand for secure and efficient trading solutions, positions Coinbase as a preferred partner for institutional investors, and aligns with the exchange's broader strategy of expanding its institutional services. This move is expected to further strengthen Coinbase's position in the institutional market and attract more clients to its platform.