Kraken MTF Integrates with Copper’s ClearLoop for Enhanced Institutional Crypto Trading
In a significant move for institutional cryptocurrency trading, Kraken MTF, the UK’s first FCA-authorized crypto derivatives exchange in Europe, has announced its integration with Copper’s ClearLoop network. This partnership, revealed on June 24, 2024, aims to provide off-exchange settlement services for institutional clients, enhancing security and efficiency in the rapidly evolving digital asset market.
ClearLoop, Copper’s innovative settlement solution, allows institutional investors to trade virtual balances across multiple exchanges while settling transactions on Copper’s infrastructure. This multi-exchange connectivity is crucial for institutions seeking to diversify risk, improve price discovery, and access broader liquidity pools in the cryptocurrency market.
Mark Jennings, CEO of Kraken MTF, highlighted the importance of this integration: “For the past few years, volumes in crypto derivatives have regularly exceeded those seen in the spot market, and institutions are driving most of this new activity. Key infrastructure developments, like the Kraken MTF integration with ClearLoop, will form the baseline as institutional engagement in this asset class continues to increase.”
The partnership offers several key benefits for institutional traders:
- Enhanced security: By settling trades off-exchange, ClearLoop mitigates the risks associated with keeping funds on exchanges, which have been targets of hacks in the past.
- Improved capital efficiency: Institutions can delegate assets instantly, making collateral more responsive to market dynamics.
- Cost savings: Direct settlement on Copper’s infrastructure bypasses blockchain-level transactions, reducing associated network fees.
- 24/7 trading capabilities: Kraken MTF’s around-the-clock operations allow institutions to manage risk and hedge positions continuously in the always-on crypto derivatives market.
Dmitry Tokarev, CEO at Copper.co, expressed enthusiasm about the collaboration: “Together, we are shaping the future of financial market infrastructure by revolutionizing liquidity and security for institutional clients. Our shared vision is to build a resilient and innovative ecosystem that sets new standards.”
ClearLoop’s growing network now includes eight live exchanges, with Kraken MTF joining the ranks of OKX, BYBIT, Deribit, BIT, Gate.io, BITFINEX, Bitget, and PowerTrade. Bitstamp and Bitmart are also slated to integrate soon, further expanding the platform’s reach.
This integration comes at a time when institutional interest in cryptocurrency derivatives is surging. Before the UK’s retail crypto derivatives ban in 2021, Kraken’s Crypto Facilities (now Kraken MTF) was trading around $30 billion worth of volume monthly. While current volumes are lower, Jennings noted that they are moving back towards those levels, partly due to integrations like the one with Copper.
