At July 3th, Xena Exchange, a platform for trading cryptocurrency perpetual and futures contracts, has announced its integration with Copper, a UK-based custody that offers an off-exchange settlement and custodian service called ClearLoop. With this setup, Xena Exchange will become one of the first cryptocurrency trading platforms with independent custody. This integration will bring Xena Exchange clients’ credit risk to zero – a breakthrough in crypto exchange security.
So far, over $1.9 billion has been stolen from cryptocurrency holders, traders, and investors on exchanges alone. Thus, traders’ counterparty risk is typically considered to be 10–20% on all centralized exchanges. The Copper ClearLoop solution brings clients’ exchange risks to zero as it runs both depository and custodian functions because, as opposed to the usual flow on the cryptocurrency market, when a client or fund manager has to send funds to an exchange and take the credit risk on that exchange, the client’s funds never leave the safe infrastructure of the custody.
The described safeguard infrastructure uses online, offline, and MPC technologies to create a client-segregated custody environment for digital assets that provides maximum security without compromising control.
Clients can allocate funds to be used as collateral on Xena Exchange instantaneously using the Copper UI or API and can release unused funds at any time. Allocated money does not leave the client's account in Copper, but the client can execute new trades on Xena Exchange through its web terminal or API. Realized PnL is settled to the client’s Copper account once an hour.
To start trading with zero counterparty risk, you need to get onboarded with Copper and open an account on Xena Exchange. Or, you can send an email to firstname.lastname@example.org to connect your Xena account to Copper.
The Copper custodian accepts both BTC and fiat deposits. At Xena Exchange, traders are provided with the infrastructure to trade derivative products settled in BTC – perpetuals and futures on Ethereum and Bitcoin. The platform plans to launch contracts that support fiat currency as collateral in the near future.