What to know:
- In a world where the winds of change blow fiercely, BitGo and Copper have forged a partnership, a beacon of hope for traders, aiming to usher in a new era where assets can dance freely while nestled safely in a regulated custody ring-fenced environment.
- Clients of the Go Network can now trade spot and derivatives on Deribit, all while their precious assets are tucked away in the warm embrace of qualified custody, automatically settled through the intricate ballet of Copper ClearLoop and BitGo’s Go Network.
In the grand theater of cryptocurrency, the qualified custodians BitGo and Copper, the masterminds behind the ClearLoop settlement system, have stepped onto the stage, offering off-exchange settlement for traders navigating the options exchange known as Deribit. And lo, it was Thursday, a day like any other, yet filled with promise.
With a flourish, clients of BitGo and Copper can now engage in the art of trading spot and derivatives on Deribit, their assets secured off-exchange in the hallowed halls of BitGo Trust, settled automatically through the seamless machinery of Copper ClearLoop and the Go Network, as the press release proclaimed.
In this post-FTX landscape, traders, like wary travelers, seek to minimize the perils of leaving their treasures on exchanges. Two years prior, BitGo and Copper had joined forces, a partnership born from necessity, allowing trading on exchanges while assets remained cocooned in a regulated custody environment.
Ah, the beauty of the combined BitGo and Copper ClearLoop networks! A simple function known as delivery versus payment (DvP) allows any BitGo client to settle instantaneously with another, an atomic swap of assets without ever needing to bring those assets on chain. Brett Reeves, the sage of BitGo’s Go Network, shared this wisdom.
“We can do this DvP settlement from cold storage, and there are no fees for it,” Reeves chuckled in an interview with CoinDesk. “We’re on a mission to eliminate that pesky settlement risk, or Herstatt risk, and bring it into the warm embrace of traditional finance.”
Behind the curtain, assets rest in the capable hands of qualified custody at BitGo. At pre-defined intraday settlement periods, the assets owed to Deribit are whisked away from a BitGo account into the Copper ecosystem, a delicate dance of finance. If these assets are owed to the client, they return, like a boomerang, to their rightful place.
“The bulk of the client’s assets remain within BitGo custody, apart from the fleeting moments of settlement when they venture to the exchange,” Reeves explained. “At settlement time, that’s the P&L they owe on transactions, or the variation margin on their positions.”
“The synergies between our companies will unlock new opportunities for investors and will completely change the landscape of trading,” declared Luuk Strijers, the CEO of Deribit, in a statement that echoed through the halls of finance.
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2025-02-20 15:07