Cryptocurrency exchange FTX has joined the ClearLoop settlement trading network as it looks to attract more institutional funds to its platform
Leading crypto exchange FTX announced yesterday that it had joined Copper’s ClearLoop settlement trading network. The entry into the network will allow FTX to gain access to more institutional investors.
Sam Bankman-Fried, FTX’s founder and chief executive officer, revealed this in an interview with Bloomberg yesterday. Bankman-Fried said, “Using a custodian is something we’ve been hearing again and again”. He stated that it is a necessity as it allows institutions to trade cryptocurrencies on the FTX platform. “A lot of people are going to want to use some sort of custodial network”, he added.
The ClearLoop settlement trading network is home to over 300 institutional asset managers. FTX’s entry into the network will allow these asset managers to trade FTX’s various products, including derivatives, options and tokenised stocks.
Cryptocurrency exchanges are making moves to expand their presence and offer more services to institutional investors. Over the past few years, the crypto market has attracted numerous institutional investors, including Paul Tudor Jones, Stan Druckenmiller, Bill Miller and Anthony Scaramucci.
FTX’s entry into the ClearLoop settlement network is one of the moves that help establish connections between institutions and crypto products, making it easier for the investors to access the various cryptocurrency products.
Prior to yesterday, FTX was the only leading cryptocurrency exchange yet to enter the ClearLoop settlement network. According to Bloomberg, FTX processed over $600 billion in trading volume in May and has over 1 million registered users on its platform, including institutional traders and family offices.
Copper offers custody, prime brokerage and settlement services for 250 digital assets and more than 40 cryptocurrency exchanges. Cryptocurrency exchanges continue to expand their services despite the current bearish trend in the market.