Top Crypto Exchange BitMart Set to Join Copper’s Asset Custody Ecosystem
With the rapid demand for custody services among institutional investors in the crypto ecosystem, BitMart is on the verge of offering its clients off-chain exchange settlement services. This comes after BitMart’s partnership with the digital asset custody company Copper.
Entering The ClearLoop Network
According to a recent statement, BitMart will be onboarded into Copper’s ClearLoop network subject to the agreement between the two parties and the completion of the technical integration of other components. After completing the technical integration aspect, BitMart’s institutional clients can trade on the platform with their assets secured by Copper’s custody service.
Furthermore, Copper’s network connects several exchanges in one secure trading loop, offering real-time settlements across multiple networks. With the collapse of the FTX crypto exchange, the industry has seen a shift in focus on the use of regulated custodial platforms, and custody revenue is projected to reach $8 billion by 2033, according to Bernstein’s research report.
In the words of Victor Wei, a top-level executive at BitMart, institutional crypto investors are seeking ways to safeguard their assets. Wei noted that the ClearLoop network satisfies clients’ demand for a more secure custody wallet to deposit their assets.
In November, the London-based Copper penned a $500 million insurance deal with Aon (AON), a leading UK insurance firm. The agreement was to facilitate cover for billions of dollars worth of crypto assets kept in cold storage custody.
The deal remains one of the biggest deals in the virtual currency ecosystem. BitMart is reported to have suffered an exploit in December 2021, which led to the theft of $196 million in digital assets from its platform.
At that time, the CEO of the exchange disclosed that the firm intended to compensate victims of the attack with its funds.
Rising Demand For Crypto Custody Services
Before the fallout of FTX and Alameda Research, the crypto ecosystem has seen a demand for custodial services in recent months. However, the FTX debacle accelerated the demand for custody services as investors saw the merits of having private keys to control their assets.
The industry has no shortage of horror stories about hacks, stolen funds, and lost passwords, and crypto custody platforms appear to have the solution for the issue. The digital asset custody space is heating up more than ever, with demands skyrocketing after the November 2022 FTX contagion.
Furthermore, institutional players seek ways to see how their digital assets are stored, including regulating crypto platforms. If custody services issue private keys to users, fund holders become responsible for keeping their keys safe.
With companies offering crypto custodial services emerging with each passing day, the industry has seen a surge in use. According to experts, revenue in this space will spike in the next few years.
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