TLDR
- XRD is available for trading on ClearLoop exchanges, enabling institutions to trade securely across multiple centralised exchanges that support XRD while keeping assets in Copper’s custody.
- ClearLoop provides off-exchange settlement and robust security, reducing risks associated with traditional exchanges.
- Copper will soon support XRD staking.
XRD is available for trading on ClearLoop exchanges, enabling institutions to trade securely across multiple centralised exchanges that support XRD while keeping assets in Copper’s custody, a step which makes Radix an attractive option for institutional players.
At the heart of Copper’s infrastructure is ClearLoop. ClearLoop was created in 2020 in response to security risks associated with trading on exchanges, it now facilitates over $50B in monthly notional trading volume, making it the Web3 market’s first and largest off-exchange settlement solution, and provides access to exchanges such as OKX, Bybit, Bitget, Deribit, Bitfinex, Gate.io, PowerTrade.
The service enables institutions to trade seamlessly across multiple centralised exchanges while keeping their assets securely within Copper’s secure MPC custody.
Why is ClearLoop the Go-To Platform for Institutional Investors?
For institutional market participants to be able to participate in Web3 confidently, custom-built solutions for these users need to be made available. A significant pain point is the lack of control over their funds when using a centralized exchange. Billions of dollars have been lost to hacks and even bankruptcy of these centralized entities, the most recent being the fall of FTX.
To mitigate these risks, Copper created ClearLoop, an off-exchange settlement solution. Due to its robust security, efficiency, and comprehensive risk management, it has grown to be the preferred option for institutional capital deploying funds into the Web3 industry.
ClearLoop allows for instant asset delegation to supported exchanges from a single collateral pool. It reduces network fees by settling trades on Copper’s infrastructure and eliminates deposit, transfer, or withdrawal fees, making it a safer alternative to holding assets directly on a centralized exchange.
Key features of Copper’s infrastructure:
Trust and Collateral Agreement: Copper creates a legal trust over the assets that clients delegate and the margins held for exchanges. This ensures that the management of these assets follows specific rules and is secure.
Copper as Trustee and Custodian: Copper serves as both the trustee and the custodian, meaning it holds and manages funds on behalf of clients and exchanges. This dual role ensures that the assets are protected and managed in the owners’ best interests.
Insolvency Protection: The trust setup protects client assets if Copper goes bankrupt. Additionally, agreements are in place to protect clients if an exchange goes bankrupt and to protect exchanges if a client goes bankrupt.
Off-Exchange Settlement: Transactions are settled directly on Copper’s secure system, which means funds do not leave Copper’s control. This greatly reduces the risk associated with counterparties.
Collateral Monitoring: Copper’s risk team continuously checks that there is enough collateral to cover settlement obligations. This ongoing monitoring ensures robust security for client assets.
Instant Asset Delegation: Funds are made available immediately on selected exchanges, allowing for quick market access. Copper’s easy-to-use interface makes moving assets to and from exchanges simple with just two clicks.
API Connectivity: Copper’s full API connectivity helps streamline trading processes by allowing clients to delegate and undelegate assets instantly and check account balances in real-time, ensuring efficient trading operations.
What does this mean for Radix?
XRD can be held in Copper’s custody and traded on exchanges that support XRD. The ability to use XRD as collateral to trade other instruments within ClearLoop and trade profits to settle in XRD are additional pieces of functionality that could be added in the future. This, in turn, helps to provide more routes for the trillions of dollars of institutional capital to flow through the Radix Ecosystem.
To find out more visit Copper.co.
