Kraken MTF Joins Copper’s ClearLoop Network

Kraken MTF, the institution-only derivatives trading arm of the cryptocurrency exchange, has recently become a part of Copper’s ClearLoop collateral management and settlement network. Originally known as Crypto Facilities before being acquired by Kraken five years ago, Kraken MTF operates from London and is regulated by the U.K.’s Financial Conduct Authority (FCA). The platform offers coin-collateralized futures contracts for various cryptocurrencies including bitcoin (BTC), ether (ETH), XRP, litecoin (LTC), and bitcoin cash (BCH).

Enhancing Institutional Connectivity

Amid concerns over the security of funds following the collapse of FTX exchange, there has been a growing interest in alternative structures like in-custody settlement networks. Copper’s off-exchange network facilitates connectivity for numerous institutional clients to platforms such as OKX, Bybit, Deribit, BIT, Gate.io, Bitfinex, Bitget, and PowerTrade, with Bitstamp and Bitmart soon to be added. This network allows for a consolidated approach to trading and risk management across multiple venues.

“This offers a solution tailored to institutional clients seeking third-party custody, especially for the derivatives they trade, enabling them to have a unified access point and trade on various platforms while minimizing risk exposure over time,” explained Mark Jennings, CEO of Kraken MTF.

Before the FCA’s ban on crypto derivatives for retail customers in early 2021, Kraken’s Crypto Facilities was processing around $30 billion in monthly trading volume. Despite the regulatory changes, Kraken MTF has continued to grow its institutional client base and aims to reclaim its previous trading volume levels by integrating with platforms like Copper.

In May of this year, ClearLoop processed 10.6 million trades with a notional volume of $64.6 billion, highlighting the network’s significant role in the institutional crypto trading landscape.