Crypto Custody Firms BitGo and Copper Deliver Off-Exchange Settlement for Deribit

Crypto custodians BitGo and Copper now offer off-exchange settlement for Deribit traders. This means traders can trade spot and derivative products on Deribit while their assets are held securely off the exchange by BitGo Trust. This reduces the risk of leaving assets on exchanges. The system uses Copper's ClearLoop and BitGo's Go Network for automated settlements. A key feature is delivery versus payment (DvP), enabling instant and free asset swaps between BitGo clients without on-chain transactions. This aims to eliminate settlement or Herstatt risk, aligning crypto trading with traditional finance practices. Assets are primarily held in BitGo's qualified custody, moving to Deribit only during pre-set intraday settlement periods for profit/loss and margin adjustments. Deribit's CEO believes this collaboration will reshape the trading environment.