In a strategic move aimed at bolstering security and efficiency in institutional crypto trading, Kraken, a leading cryptocurrency exchange, has announced the integration of Copper's ClearLoop. This integration allows Kraken's institutional clients to settle their trades through Copper's infrastructure instead of relying solely on the exchange's platform.

ClearLoop, developed by Copper, operates by enabling institutional traders to execute trades with virtual balances on exchanges, while the actual settlement occurs securely on Copper's network. This arrangement mitigates the risk associated with keeping large token balances on exchanges, which historically have been vulnerable to hacking incidents.

Mark Jennings, CEO of Kraken MTF, emphasized the significance of this integration amidst increasing institutional involvement in crypto derivatives trading. "For the past few years, volumes in crypto derivatives have regularly exceeded those seen in the spot market, with institutions driving much of this new activity," Jennings stated. He highlighted that critical infrastructure developments like the integration with ClearLoop are pivotal as institutional engagement in crypto assets continues to expand.

ClearLoop's current integration extends beyond Kraken to platforms such as OKX, Bybit, Deribit, BIT, Gate.io, Bitfinex, Bitget, and PowerTrade. Looking ahead, Copper plans to expand its network to include Bitstamp and Bitmart in the near future, further broadening its footprint in the crypto trading ecosystem.

The move underscores Kraken's commitment to enhancing security and operational efficiency for institutional clients navigating the complexities of the cryptocurrency market. By leveraging Copper's innovative settlement infrastructure, Kraken aims to provide a robust trading environment that meets the stringent requirements of institutional investors while safeguarding digital assets against potential security threats.