Another cryptocurrency exchange to engage with institutional adoption as FTX signs a partnership with Copper.co ClearLoop settlement trading network. The partnership will provide access to FTX’s crypto products to over 300 institutions under Copper. co. Copper’s platform provides custody, prime brokerage, and settlement services for over 40 exchanges and 250 digital assets.
FTX will be Copper.co ClearLoop’s largest crypto exchange partnership with over 1 million registered users of FTX, comprising of institutional traders as well as family offices. FTX was recently in the news for managing over $600 billion in trade and exchange during May.
Institutions under Copper. co will benefit from the FTX partnership, as they now have a gateway to trade FTX crypto products in form of derivatives, options, and tokenized stocks, while their funds remain protected under Copper. co ClearLoop’s custody.
FTX Continues its Partnership Spree
FTX’s founder and chief executive officer, Sam Bankman-Fried shared that institutions have been demanding custodian services before getting involved in cryptocurrency trade and exchange. However, he also mentioned that there is no certainty of these organization’s mindsets about the crypto sphere, and preserving crypto assets under custodian protection might just be a backup plan. Nevertheless, it is a big step towards making the crypto market more regulated and involved in routine lives.
“Using a custodian is something we’ve been hearing again and again…A lot of people are going to want to use some sort of custodial network…I don’t think anyone knows for sure what is going to end up mattering the most for institutions.”, Sam Bankman-Fried, FTX’s founder and chief executive officer, told Bloomberg.
Institutional adoption plays a major role in the expansion of cryptocurrencies into routine use. Business tycoons like Paul Tudor Jones, Stan Druckenmiller, Bill Miller, and Anthony Scaramucci have been seen gravitating towards crypto investments. However, the volatile nature and higher risk of breaches keep institutional giants off the crypto market.
FTX and Copper partnership may change the face of this former dilemma and lead to a drastic institutional shift towards the crypto market.
“Our clients are some of the largest hedge funds in the world…For these guys, this is the Holy Grail.”, founder and CEO of Copper, Dmitry Tokarev told Bloomberg.