Kraken MTF, the institution-exclusive derivatives trading arm of the renowned cryptocurrency exchange, has forged an alliance with Copper’s eminent collateral management and settlement network, ClearLoop.

Acquired as Crypto Facilities by Kraken approximately five years ago, Kraken MTF is headquartered in London and operates under the stringent regulations of the U.K.’s Financial Conduct Authority (FCA). This multilateral trading facility, eschewing the retail market, facilitates coin-collateralized futures contracts across various cryptocurrencies including bitcoin (BTC), ether (ETH), XRP, litecoin (LTC), and bitcoin cash (BCH).

The catastrophic collapse of the FTX exchange, which left numerous traders’ funds stranded, has accelerated the shift towards alternative mechanisms like in-custody settlement networks. Copper’s off-exchange network offers an array of institutional clientele connectivity to leading platforms such as OKX, Bybit, Deribit, BIT, Gate.io, Bitfinex, Bitget, and PowerTrade. Bitstamp and Bitmart are expected to join the network shortly, according to a press release.

Also read: All FTX Creditors Will Get 118% of Their Funds Back in Cash

“This integration caters to a specific segment of institutional clients who prefer third-party custody, particularly for derivatives trading,” Kraken MTF CEO Mark Jennings elaborated in an interview. “They benefit from a single access point, a unified wallet control, and the ability to trade across multiple venues, consolidating their risk within a four-hour window.”

Prior to the FCA’s prohibition on crypto derivatives for retail investors in early 2021, Kraken’s Crypto Facilities boasted a monthly trading volume of approximately $30 billion, Jennings revealed.

“We have leveraged the MTF to expand our institutional client base,” Jennings added. “Although we have not yet reached that $30 billion monthly volume, we are on a trajectory to regain it, significantly aided by integrations with entities like Copper.”

In May of this year, ClearLoop processed an impressive 10.6 million trades, amounting to a notional volume of $64.6 billion.