Crypto News – Kraken’s Derivatives Wing Partners with Copper for Crypto Settlement Network

Crypto News – Kraken’s Derivatives Division Enters Collaboration with Copper’s Crypto Settlement Network

Crypto News- In a significant move within the crypto derivatives space, Kraken’s institution-only derivatives trading arm, known as Kraken MTF, has teamed up with Copper’s widely-used collateral management and settlement network, ClearLoop.

Background: Kraken MTF and ClearLoop

Kraken MTF, initially acquired as Crypto Facilities by Kraken approximately five years ago, operates from its base in London under the regulatory oversight of the U.K.’s Financial Conduct Authority (FCA). Catering exclusively to institutional investors, this multilateral trading facility specializes in coin-collateralized futures contracts spanning major cryptocurrencies such as bitcoin (BTC), ether (ETH), XRP, litecoin (LTC), and bitcoin cash (BCH).

ClearLoop, developed by crypto custody specialist Copper, emerged as a response to the need for secure and efficient settlement solutions in the wake of incidents like the collapse of the FTX exchange. It offers a seamless off-exchange network, linking hundreds of institutional clients to prominent trading platforms including OKX, Bybit, Deribit, BIT, Gate.io, Bitfinex, Bitget, and PowerTrade. Additionally, ClearLoop is poised to onboard Bitstamp and Bitmart in the near future, as per the latest press release.

Insight from Kraken MTF CEO

Mark Jennings, CEO of Kraken MTF, emphasized the appeal of third-party custody solutions for institutional traders, especially concerning the derivatives market. He highlighted the convenience of a single access point for custody services, enabling traders to manage their assets efficiently while accessing multiple trading venues and mitigating risks over a designated time frame.

Reflecting on Growth and Regulation

Jennings reminisced about Kraken’s Crypto Facilities, which before the FCA’s ban on crypto derivatives for retail investors in early 2021, boasted a monthly trading volume of around $30 billion. While acknowledging that current volumes haven’t yet reached those heights, Jennings expressed optimism about the trajectory, attributing part of the resurgence to initiatives like the integration with Copper.

ClearLoop’s Performance

In May of the current year, ClearLoop demonstrated robust performance by processing a staggering 10.6 million trades, amounting to a notional volume of $64.6 billion. This underscores the growing demand for secure and efficient settlement solutions within the institutional crypto trading landscape.

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