Kraken’s Derivatives Arm Joins Copper’s Crypto Settlement Network

As an analyst with extensive experience in the cryptocurrency industry, I believe that Kraken MTF’s collaboration with Copper and their integration into ClearLoop is a significant move that caters to the growing demand for alternative trading structures among institutional investors. With Kraken MTF offering coin-collateralized futures contracts across major cryptocurrencies and being regulated by the U.K.’s Financial Conduct Authority, it presents an attractive option for institutions seeking a trusted and compliant platform for their derivatives trading needs.

As a researcher studying the latest developments in the cryptocurrency industry, I’m excited to share that Kraken MTF, the institutional derivatives trading division of Kraken, the renowned digital asset exchange, has recently announced its integration with Copper’s advanced collateral management and settlement system, ClearLoop. This collaboration will enable Kraken MTF to offer enhanced services for managing and settling collateral in a more streamlined and efficient manner, thereby catering better to the needs of institutional clients.

As an analyst, I’ve noticed a growing trend among traders to seek out alternative structures for trading crypto after the collapse of FTX left many funds stranded. One such solution is Copper’s off-exchange network, which currently connects over 500 institutional customers to exchanges like OKX, Bybit, Deribit, BIT, Gate.io, Bitfinex, and Bitget. Soon, Bitstamp and Bitmart will also be joining the roster, as per a recent press release.

“I represent a clientele of institutional investors who value third-party custody, particularly for their derivatives transactions. With our platform, they can manage a unified wallet and execute trades across multiple venues within a four-hour window, thereby effectively managing their risk.”

Prior to the Financial Conduct Authority (FCA) prohibiting crypto derivatives for individual investors becoming effective in January 2021, Kraken’s Crypto Facilities platform saw approximately $30 billion in trading volume each month, according to Jennings.

“Jennings added that we’ve utilized the Multi-Tenant Fidelity (MTF) platform to expand our relationship with our institutional clients. Currently, we haven’t reached the $30 billion monthly mark yet. Nevertheless, we’re making progress and part of this growth includes drawing in more institutional clients by collaborating with platforms like Copper.”

This May, ClearLoop handled a total of 10.6 million trades, equating to a value of approximately $64.6 billion.