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Institutional digital asset custody and trading solutions provider Copper has inked a deal with Bybit to offer custodial and settlement services for the Singapore-based cryptocurrency exchange's institutional clients via Copper's ClearLoop service.
ClearLoop integration is expected in the first quarter of the year, Copper said in an announcement on Wednesday. This allows Bybit's institutional clients to deploy capital and trade immediately on Bybit, while maintaining their assets off-exchange in independent custody via Copper, enabling them to increase allocations, mitigate counterparty risk, and optimize capital efficiency.
In the announcement, Bybit said it expects rising demand for a variety of asset custody and custodial service options to satisfy an increasingly demanding clientele, and it signals a renewed focus on higher net worth individuals and institutional clients.
As more institutional investors enter the crypto market, there is a growing demand for institutional-grade custody solutions, which typically include advanced security measures, regulatory compliance measures, insurance, real-time reporting and transparency, and more.
“Recent events demonstrate that crypto market structure needs to evolve to mirror traditional finance and a key element of this is off-exchange settlement," Dmitry Tokarev, CEO at Copper, said.
The partnership with Copper is the latest in a series of strengthened compliance, security and custodial enhancements and support from Bybit: it recently announced a US$100 million support fund for institutional investors, launched its own proprietary Web3 wallet, and enhanced its compliance and AML infrastructure.