ZUBR, the cryptocurrency derivatives platform, has fully integrated ClearLoop, a settlement tool from London-based digital currency custodian, Copper – allowing clients to settle digital currency transactions off-exchange within milliseconds.
Having previously been rigorously stress-tested by Exact Pro, an internationally recognised specialist firm for quality assurance of exchanges, the integration of ClearLoop into ZUBR provides another layer of security and efficiency for institutional and sophisticated traders who usually move their holdings from crypto exchanges to secure custodian services or cold wallets.
ClearLoop eliminates the settlement delay due to the blockchain network congestion and reduces settlement times, which can take anything up to an hour to complete.
With the ClearLoop integration, both ZUBR and its clients will have assets allocated to cover any position submitted by a trader before it is opened. When the trade is closed, ClearLoop instantly settles fiat and crypto trades between the parties. Clearloop also enables traders to move assets on to the ZUBR almost instantly, a huge benefit to traders employing high-frequency arbitrage strategies. This will allow ZUBR’s clients to react faster and optimise their use of capital.
ZUBR joins other exchanges such as Deribit, AAX, Bitfinex*, CoinPass, Diversifi and Xena which have also integrated Copper’s CleapLoop.
All assets which are under Copper’s client segregated custody or traded through ClearLoop are protected by award-winning multi-party computation (MPC) wallets. Copper’s clients are also covered by a full crypto crime insurance policy, provided by A+ rated insurers and tailormade for digital assets.
ZUBR has earlier enhanced its compliance and due diligence measures using tools such as risk scoring and transaction tracking through the Crystal Blockchain platform, analytics and investigative division of Bitfury designed to bolster due diligence and track bad actors in the blockchain space.
Since March 2020, Crystal’s database considers wallets managed by ZUBR exchange to have a "Trusted Exchange” label, meaning that this entity is running Anti-Money Laundering (AML) and Know Your Customer (KYC) checks on all onboarded customers according to the Financial Action Task Force and the European Union’s 5th Anti-Money Laundering Directive (AMLD5) recommendations for digital asset businesses.
ZUBR received in-principle approval for its Distributed Ledger Technology (DLT) Provider licence (Gibraltar) in May 2020 and is expected to be in the first generation of European regulated cryptocurrency exchanges.
Ilgar Alekperov, CEO of ZUBR, said: “ZUBR puts user experience and security above all else – so integrating Copper’s ClearLoop was a natural and obvious next step as de-risking settlement and cutting down on delays will allow our users to push their capital even further.
“Our users already enjoy guaranteed microsecond connection speeds to our exchange. Now, with ClearLoop, we can offer market-leading settlement times too. We have already strengthened our platform with tools such as the Crystal Blockchain platform and are also pursuing other certification to verify the trust and security of the platform. With ClearLoop, we are taking digital arbitrage to the next level with the most highly secure trading environment for our clients.”
Dmitry Tokarev, Founder and CEO of Copper, said: “At Copper, we committed to ensuring that all institutional crypto investors can store and trade cryptoassets efficiently and securely. ClearLoop is the culmination of years of work to make that commitment a reality, and brings us one step closer to making crypto mainstream.
“Integrating with ZUBR is a natural next step for the ClearLoop system. Our MPC-secured wallets ensure assets are protected throughout the entire life cycle of a trade. For institutions, this is not just a nice to have – it is essential.”
* Please note that the ‘trust structure’ and its related collateral arrangements do not currently apply to Bitfinex.