Flow Traders Connects to Copper’s ClearLoop

Flow Traders’ digital asset market making unit has connected to  crypto custodian Copper’s ClearLoop settlement network, also connecting the LP with Copper’s client base.

Copper observes that counterparty risk has been a key topic post-FTX, and claims that ClearLoop serves as both the first and now the largest off-exchange settlement network for digital assets. Recognising this, it adds that Flow Traders plans to integrate ClearLoop for all supported exchanges both to mitigate counterparty risk, but also to leverage the increase in capital efficiency delivered as a result of being able to allocate funds to exchanges in less than 100ms.

In Q4 2023, Copper released the industry’s first custodian-agnostic OTC settlement solution – Copper Network. Flow Traders’ full-stack integration enables the firm to further scale its OTC operations by leveraging the built-in unified post-trade communication and settlement workflows of the Copper Network, in addition to identifying and establishing new counterparty connections.

The Copper platform will serve as a new gateway to improve connectivity between the firms’ mutual client-bases, notably, Flow Traders can interact, transfer and receive assets to and from Copper’s list of ETP Issuers for which Flow Traders serve as an Authorised Participant.

“Innovative structures like Copper’s Clearloop and the Copper Network are contributing to developing more mature crypto markets, which we believe will enhance trust across the digital asset ecosystem,” says Michael Lie, global head of digital assets at Flow Traders. “Essentially, Copper’s infrastructure enables us to keep our funds secure off-exchange in a reliable structure, thereby significantly reducing counterparty risk. Trust is a recurring macro theme to unlocking broader adoption of both crypto and the underlying innovation in the space; therefore, we are actively leveraging and supporting structures like the one Copper has introduced to continue to improve markets.”

Dmitry Tokarev, CEO at Copper, adds, “We look forward to the collaboration with our partners at Flow Traders. This latest integration in our Copper infrastructure will be an additional development in enhancing secure connectivity for investor access to digital assets.”