Cryptocurrency Custodians Bitgo and Copper, the companies behind the Clearloop Settlement System, are using Options Exchange Deribit to provide traders with non-exchange settlements, the company said Thursday.
According to a press release, Bitgo and Copper clients can trade spots and derivatives on Deribit with Deribit, protecting qualified custody with qualified custody and automatically resolving copper clearloop and GO networks I did.
In the post-FTX world, we aim to reduce the risks associated with leaving assets on the exchange as much as possible. Bitgo and Copper announced a partnership two years ago to trade exchanges.
The simple feature of the Bitgo and Copper Clearloop combination is Delivery and Payment (DVP). So, Bitgo clients can resolve instantly with other Bitgo clients with an astromix swap of assets without having to bring those assets onto the chain. Reeves, head of Bitgo’s GO Network.
“We can make this DVP settlement from cold storage, but there is no fee,” Reeves said in an interview with Coindesk. “So we’re really looking at eliminating the risk of that settlement, or the risk of a helmet, and moving it into the traditional financial space.”
Under the hood, assets are held in qualifying or regulated custody at Bitgo, and then, during a pre-defined intraday settlement period, assets borne by DeRibit will be subject to copper from the Bitgo account. It will be deleted into the ecosystem and deleted into Deribit. If these assets are paid to the client, it will go back the other way, he said.
“The majority of the client’s assets are under Bitgo’s custody, except for the settlement time that will move into exchange,” Reeves said. “At the time of settlement, it’s the P&L they owe on the fluctuation margin of the transaction or its location.”
“The synergy between us will unlock new opportunities for investors and completely change the trading situation,” Deribit CEO Luuk Strijers said in a statement.
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