Wall Street is Coming to Bitcoin: Here’s Why Crypto’s Institutional Market Just Saw a Massive Turning Point
Things ramped up a gear today as Bitcoin derivatives platform, Deribit announced full integration of the ClearLoop custody and settlement solution for institutions.ClearLoop is the brainchild of London-based Copper, headed by CEO, Dmitry Tokarev, who commented:“ClearLoop, the fruit of this collaboration, allows investors to settle trades instantly, keeps their assets secure and insured in third-party custody, removing concerns about self-custody, all the while eliminating counterparty risk and the associated limitations with volume.”No doubt, a secure and frictionless off-chain custody solution represents a massive turning point for institutional investors.Previously, asset managers had to transfer crypto from their secure cold storage wallets into the exchange’s hot wallets to settle and trade. Not only can this be time-consuming, but in doing so, the level of risk is heightened as a result.ClearLoop and Cooper’s external custody solution makes settlement in seconds. This has the potential to revolutionize the market structure of crypto derivatives, thus driving greater institutional adoption.Institutional Money is Dominating Bitcoin VolumeLike it or not, institutional money forms a significant portion of the volume in the Bitcoin market. This trend is only set to increase as crypto assets begin to cross into the investment mainstream.