Coinbase Unlocks Off-Exchange Settlement for Institutions Through Copper’s ClearLoop, Responding to Soaring Institutional Demand

Coinbase International Exchange, the global derivatives arm of the U.S.-based crypto giant, has entered a major strategic partnership with Copper, a London-based institutional crypto custodian, to enable off-exchange settlement through Copper’s flagship infrastructure, ClearLoop.

Announced on Thursday, the integration aims to address two of the most critical pain points in institutional crypto trading: counterparty risk and capital inefficiency. By offering secure, near-instant collateral management without requiring funds to leave cold custody, Coinbase is pushing to redefine how institutional players trade and manage risk in digital asset markets.

What’s New: ClearLoop x Coinbase Integration

The integration allows institutional clients of Coinbase International Exchange to settle trades off-exchange using ClearLoop, Copper’s off-exchange settlement network powered by multiparty computation (MPC) technology.

This means clients can:

• Trade with virtual balances on Coinbase International Exchange

• Hold custody of assets with Copper rather than on the exchange

• Settle trades in real-time, significantly reducing counterparty risk

• Avoid pre-funding exchange wallets, freeing up capital for better allocation

Key Launch Details

• Initial Collateral Supported: USDC

• Jurisdiction: Regulated under the Bermuda Monetary Authority

• Launch Partner: Ethena, the USDe stablecoin protocol, is already using the setup

Marc Zeitouni, CEO of Coinbase International Exchange, commented:

“Institutional clients demand both security and agility when managing digital assets. By enabling off-exchange settlement through ClearLoop, we're giving institutions more flexibility and trust — key to unlocking their full engagement in crypto derivatives trading.”

Coinbase International Exchange. Source: Coinbase

Related: U.S. Government Urges Supreme Court to Reject Coinbase User’s Crypto Records Challenge

Why It Matters: Solving Two Major Institutional Bottlenecks

Institutional crypto trading has historically required large amounts of capital to be transferred and parked on centralized exchanges, introducing significant counterparty risk and capital inefficiency. In the post-FTX landscape, this model has become increasingly unattractive to hedge funds, asset managers, and family offices.

With this integration, Coinbase is now offering:

• Capital efficiency: Clients don’t need to move assets from custody to execute trades

• Speed: Collateral is updated in real time via ClearLoop's off-exchange infrastructure

• Security: Settlement occurs off-exchange with no exposure to exchange wallet hacks or mismanagement

Amar Kuchinad, Global CEO at Copper, emphasized:

“This integration with Coinbase International Exchange is a milestone for the evolution of secure digital asset infrastructure. It offers institutions the same kind of settlement protection and performance they expect in traditional finance.”

The Bigger Picture: Coinbase’s Institutional Bet

Since launching in 2023, Coinbase International Exchange has become a significant player in the global derivatives market, offering over 150 listed assets, up to 20x leverage, and deep liquidity for institutional traders outside the U.S.

The exchange’s inclusion in ClearLoop’s growing network — which already includes Deribit, OKX, Bybit, and Bitfinex — signals its commitment to remaining a top-tier venue for regulated, scalable institutional trading.

Institutional Appetite for Crypto Is Growing

According to a joint March survey by Coinbase and EY-Parthenon:

• 83% of institutional investors plan to increase their crypto allocations in 2025

• Over 50% of respondents are already holding altcoins beyond BTC and ETH

• XRP and Solana (SOL) are among the most held by institutions

A separate Fireblocks report from May revealed:

• 90% of institutional players are using or testing stablecoins

• 47% already use stablecoins for payments or liquidity management

In this context, the Coinbase-Copper integration doesn’t just improve security — it also aligns with the evolving operational needs of large-scale crypto investors.

What’s Next?

Coinbase has confirmed that more collateral assets beyond USDC will be supported in the near future, potentially opening the door to BTC, ETH, and other stablecoins. The firm is also exploring additional regional partnerships to meet growing demand across Asia, Europe, and LATAM.

For Copper, the move further cements ClearLoop’s reputation as a critical settlement layer for institutional crypto markets, offering custody-grade protection without sacrificing liquidity or trading speed.

Related: Crypto Market Recap: Coinbase Makes TIME 100 List, Buterin Unveils New ID Tech, XRP Rallies on SEC Update