Bitfinex Targets Institutions with Off-Exchange Settlement

Crypto exchange, Bitfinex announced on Tuesday its partnership with infrastructure provider, Copper.co to integrate ClearLoop, an off-exchange settlement and clearing network.

With this integration, the crypto exchange is targeting institutional investors, who became very interested in Bitcoin and other top Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term.

“Our platform’s relationship with Copper is driving uptake of the digital token trading among hedge fund and asset managers worldwide, transforming how institutional customers engage with digital tokens, by providing market-leading custody and trading solutions,” Bitfinex CTO, Paolo Ardoino said.

Creating a Secure Crypto Trading Environment for Institutions

London-based Copper.co offers a segregated custodian account, which allows institutional clients to trade digital assets on exchanges without moving their funds out of the cold wallets. This, according to the company, is mitigating counterparty risk and reducing deposit and withdrawal waiting time.

“We are proud to have Bitfinex as a key partner in ClearLoop, Copper’s instant off-exchange settlement and clearing network,” said Alex Ryvkin, CPO at Copper.

“As the efficiency of crypto-markets improves and regulatory standards evolve, the institutional investment space gets more and more competitive. To keep winning, asset managers will have to prioritize infrastructure that is able to facilitate the full spectrum of traditional strategies, and beyond, alleviating some of the most common risks associated with the crypto-space.”

Bitfinex, which faced a lot of backlash over an unsecured loan from Stablecoin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Read this Term issuer Tether and offering services to US-based traders, settled with the New York prosecutors for an $18.5 million penalty.

Though established as a retail crypto trading venue, Bitfinex’s focus on institutional clients can be seen with its collaboration with Zug-based infrastructure provider, Market Synergy for offering institutional standard cryptocurrency connectivity, making it capable of handling high-frequency trades.