Matrixport has confirmed a partnership with Copper.co that will provide access for Matrixport clients to Copper’s off-exchange collateral management and settlement service ClearLoop.
This alliance will reinforce Matrixport’s prime brokerage solution by extending access to a wide network of exchanges connected to ClearLoop, enabling institutional customers to keep their assets within Copper infrastructure while being able to trade on ClearLoop-linked exchanges via their Matrixport sub-accounts.
According to Matrixport, this arrangement promotes clients’ capital efficiency, while ensuring that they are protected from exchange counterparty risk.
According to Matrixport’s head of prime brokerage Daniel Egloff: “Effectively managing exchange counterparty risk is a priority among institutions. Copper.co’s solution delivers unfettered access to an extensive list of high-volume exchanges, while minimising exchange counterparty exposure.
“Clearloop empowers us to offer our clients a more secure and capital efficient way to trade and invest in digital assets. As a company that is fully committed to robust operational risk management, we are excited about integrating best-in class solutions for our prime brokerage clients.”
Copper CEO Dmitry Tokarev adds: “This partnership demonstrates our shared commitment to building a more secure, transparent and accessible financial market infrastructure in the digital asset industry. Copper has implemented a dedicated account structure for ClearLoop to address potential insolvency risks.
"Clients and exchanges are granted a security interest over their assets within the trust, favouring each other. This includes our innovative bankruptcy remote legal framework where, in the event of insolvency, the digital assets held in trust would not be part of Copper’s insolvent estate. Copper’s financial risk team monitors the collateral round the clock, providing an additional layer of assurance.”
