Coinbase unlocks off-exchange settlement for institutions amid ‘high’ demand

Coinbase International Exchange has integrated with Copper’s ClearLoop network to offer institutional clients access to off-exchange settlement amid “high” demand for more efficient and secure trading infrastructure.

The collaboration, announced Thursday, allows institutions to manage collateral and settle trades in near real-time without moving funds onto the exchange, according to a press release shared with Cointelegraph.

The move aims to reduce counterparty risk and boost capital efficiency, two major concerns for institutional crypto participants operating at scale. Ethena, a stablecoin protocol known for its role in hedging USDe, has been named a day-one launch partner for the integration.

“Institutions want this functionality and flexibility because ClearLoop enables a jumpstep in the off-exchange settlement times for institutions using Coinbase International Exchange,” a Coinbase spokesperson told Cointelegraph. “This improves the user experience of managing collateral, reducing counterparty risk and improving capital efficiency.”

Coinbase-Copper integration begins with USDC

The integration is regulated under the Bermuda Monetary Authority and is currently available exclusively with USDC (USDC). Coinbase said it plans to support additional collateral assets in the near future.

ClearLoop, developed by London-based Copper, uses multiparty computation (MPC) technology to allow clients to trade virtual balances on centralized exchanges while settlement occurs on Copper’s infrastructure, reducing the need to hold large amounts of assets on exchanges. 

“This significant integration with Coinbase International Exchange expands institutional access to rapid, secure off-exchange trading and settlement,” said Amar Kuchinad, global CEO of Copper. “This is a milestone in the development of a mature digital assets industry.”

Coinbase International Exchange, launched in 2023, has become a key player in global crypto derivatives, offering more than 150 listed assets and up to 20x leverage. The exchange joins ClearLoop’s growing network, which already includes Deribit, Bybit, OKX and Bitfinex.

“Institutional clients demand both security and agility when managing digital assets,” said Marc Zeitouni, CEO of Coinbase International Exchange.

Institutions eye bigger crypto bets

A March survey by Coinbase and EY-Parthenon revealed that 83% of institutional investors plan to increase their crypto allocations in 2025, with many already holding altcoins beyond Bitcoin (BTC) and Ether (ETH).

The survey named XRP (XRP) and Solana (SOL) the most popular holdings. It also revealed that a majority of respondents expect to dedicate 5% or more of their portfolios to crypto this year.

Similarly, a May report by Fireblocks found that 90% of institutional players are using or exploring stablecoins, with almost half already deploying them for payments.