Bitget Introduces Off-Exchange Settlement for Institutional Crypto Custody
(3 hours ago) · 1 source · Summarized by CryptoBipto
Bitget has announced changes to how institutional clients can hold and trade cryptocurrency through an off-exchange settlement model. The approach reportedly allows institutions to trade on Bitget while keeping assets in third-party custody rather than on the exchange itself.
WHY IT MATTERS
When you trade on a crypto exchange, you typically have to deposit your money or crypto onto that exchange first. This is a bit like handing your cash to a casino before you can place bets — if the casino goes bankrupt, your money could be lost. This risk is called "counterparty risk." Off-exchange settlement is a newer approach where a separate, trusted company (called a custodian) holds your assets while you still trade on the exchange. Think of it like keeping your money in a bank vault while using a trading app — the trading app never actually holds your funds. This matters because large investors, like hedge funds and asset managers, are often reluctant to put large amounts of money at risk on any single exchange, and solutions like this are designed to make them more comfortable participating in crypto markets.
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- beincrypto.com
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