Crypto Exchange PowerTrade to Offer Custody Services to Institutional Clients

The firm is using technology from Copper, a crypto custody outfit, to hold digital assets outside of its exchange.

By Will Canny

Nov 14, 2022 at 1:51 p.m. UTC

Updated Nov 14, 2022 at 2:44 p.m. UTC

CDCROP: Business and office concept - businessman shaking hands each other. Human resources management and recruitment (Getty Images) — PowerTrade is working with Copper to offer custody services to institutional clients. (Getty Images)

Will Canny

Will Canny is CoinDesk's finance reporter.

PowerTrade, a crypto exchange focused on derivatives, has partnered with London-based custody firm Copper to offer custodial and settlement services for its institutional clients, the company said in a statement Monday.

PowerTrade will use Copper’s ClearLoop technology to allow customers to minimize counterparty risk by enabling them to trade on the exchange while maintaining assets off exchange in independent custody.

“Copper’s ClearLoop brings institutional-grade clearing and settlement to PowerTrade in line with TradFi standards,” said Mario Gomez Lozada, founder and CEO of PowerTrade. “Under this model PowerTrade does not custody our client’s assets, which will result in vastly improved controls when it comes to segregation of assets, settlements and funds management."

Last month, PowerTrade said it was rolling out a RFQ (request for quote) model for the options market to allow it to cater to institutional investors by mirroring a widely used practice in traditional finance.

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