Coinbase International Exchange has officially integrated with Copper’s ClearLoop network to enable off-exchange settlement for institutional investors—a move driven by accelerating demand for secure, real-time crypto trading infrastructure.
The integration allows institutions to trade without moving funds directly onto the exchange, reducing counterparty risk while improving collateral efficiency—two top priorities in today’s institutional digital asset landscape.
What Is Off-Exchange Settlement?
Off-exchange settlement lets institutional traders execute orders on a centralized exchange while collateral remains secured off-platform, typically in regulated custody. Using multi-party computation (MPC), Copper’s ClearLoop offers a technological bridge between custodians and exchanges, executing trades in near real time while keeping assets secure.
https://cointelegraph.com/news/coinbase-off-exchange-settlement-institutions-high-demand
This approach significantly reduces exposure to exchange-related risks—such as downtime, hacks, or insolvency—by separating custody from trading.
Coinbase-Copper Partnership: Key Details
The integration is initially supported for trades settled in USDC, a popular dollar-pegged stablecoin. Regulated by the Bermuda Monetary Authority, the infrastructure enables trading on Coinbase International Exchange while custody and collateral settlement occur on Copper’s secure MPC layer.
Ethena, a stablecoin protocol known for its USDe hedging framework, has joined as a day-one launch partner, demonstrating institutional confidence in the product.
“This improves the user experience of managing collateral, reducing counterparty risk, and enhancing capital efficiency,” a Coinbase spokesperson explained.
Coinbase has confirmed plans to expand support to other collateral types in the near future, further deepening its institutional service offering.
A Growing Network of Institutional Access
Coinbase’s move positions it alongside other major exchanges already integrated with ClearLoop, including Deribit, OKX, Bybit, and Bitfinex. The move marks another milestone for Coinbase International Exchange, launched in 2023, which now offers 150+ listed assets and up to 20x leverage for global users.
“Institutional clients demand both security and agility when managing digital assets,” said Marc Zeitouni, CEO of Coinbase International Exchange.
This partnership adds a trusted custody layer to Coinbase’s derivatives platform, potentially driving increased participation from hedge funds, asset managers, and crypto-native institutions.
Why Institutions Want Off-Exchange Options
A recent joint survey by Coinbase and EY-Parthenon revealed that 83% of institutional investors plan to increase their crypto exposure in 2025. Moreover, over half of the respondents expect to allocate 5% or more of their portfolios to digital assets.
Popular assets among these institutions include XRP, Solana, Bitcoin, and Ether, reflecting a broadening appetite for diversified crypto investments.
Complementing these findings, a separate report by Fireblocks indicated that 90% of institutional firms are exploring crypto-related services, from custody to staking to on-chain trading infrastructure.
Final Thoughts
As institutions continue to scale their presence in digital assets, solutions that reduce risk and optimize capital—like off-exchange settlement—are becoming essential.
By integrating with Copper’s ClearLoop, Coinbase is positioning itself at the forefront of institutional-grade crypto infrastructure, appealing to a new class of investors who prioritize security, compliance, and operational efficiency.
This move not only strengthens Coinbase’s global derivatives platform but also reinforces the broader trend of institutional maturity in the digital asset space.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.