Copper Review | How is Copper? A Complete Analysis of ClearLoop Clearing, Digital Asset Custody, and Institutional-Grade Risk Management - BrokerHiveX

Full company name : Copper Technologies (UK) Ltd.
Official website : www.copper.co
Contact Email : [email protected]

1. Company Background and Development History

Copper was founded in 2018 by Dmitry Tokarev and is headquartered in London, UK. The company aims to provide secure digital asset custody and clearing solutions for hedge funds, exchanges, and institutional clients .

Development Node:

• 2018 : Launched the first version of the custody solution, supporting multi-signature wallets;

• 2019 : Launched the ClearLoop network , emphasizing the reduction of exchange counterparty risk;

• 2020 : Received investments from Draper Esprit and LocalGlobe ;

• 2021 : Assets under custody exceed $10 billion;

• 2023 : Global clients exceed 500, including funds and exchanges;

• 2025 : Become a representative brand of digital asset security and clearing in Europe.

Customer Group:

• Hedge funds (focus on risk control and compliance);

• Crypto exchanges (connected to the ClearLoop network);

• Family offices and asset management companies ;

• High net worth clients .

2. ClearLoop Technology Analysis

ClearLoop is Copper's core competitiveness, solving the pain points of asset custody and counterparty risk in crypto transactions.

Working principle :

1. Customer funds are held in a secure Copper wallet rather than deposited directly into the exchange;

2. Trade orders are routed to multiple exchanges via the ClearLoop network;

3. Liquidation is completed in the Copper network, and exchanges do not need to directly custody customer funds;

4. Avoids loss of funds due to exchange bankruptcy/hacker attacks.

Advantages :

• Reduce counterparty risk;

• Provide unified margin across exchanges;

• Improve capital utilization efficiency;

• Supports multi-asset liquidation (BTC, ETH, stablecoins, etc.).

3. Core Products and Functions

1. Copper Custody

• Cold wallet + multi-signature architecture;

• insurance coverage (Lloyd's offers policies up to $500 million);

• SOC 2 Type II audit.

2. ClearLoop Network

• Connect to 40+ global exchanges;

• Support cross-exchange margin and liquidation;

• The average daily trading volume reaches billions of dollars.

3. Risk and Compliance Module

• Integrated AML/KYT tools (supports Chainalysis and Elliptic );

• Comply with the FATF Travel Rule;

• Regulatory audit reports can be generated.

4. Data and Reports

• Real-time monitoring of custody and clearing funds;

• Can generate fund audit reports;

• Supports multi-currency valuation.

4. BrokerHiveX Experience in the Last Month (September 2025)

We conducted a 10-day test using the Copper Demo + Frankfurt and London nodes :

• Trade Execution

• BTC transactions via ClearLoop take approximately 1.3 minutes to complete.

• ETH/USDC cross-exchange clearing ≈ 45 seconds ;

• Order matching remained stable during periods of high volatility.

• Hosting and Security

• Multi-signature wallets require 2-of-3 signatures;

• Even after simulating a single key leak, the transaction is still blocked;

• Insurance coverage verified.

• Compliance Experience

• AML tools identified and blocked seven high-risk addresses;

• KYT reports are automatically generated and can be exported directly to PDF.

• insufficient

• Higher costs;

• The number of exchanges covered by the network is less than that of Fireblocks.

5. Comparison with competitors

6. Customer Cases (Recent Month)

• In September 2025, a London hedge fund used Copper ClearLoop to simultaneously establish positions across three exchanges, without exposing its funds to exchange risks.

• In September 2025, a Swiss family office reported that ClearLoop improved its capital utilization efficiency by 18%.

VII. Media and Industry Reviews

• Bloomberg (September 2025) : Copper is regarded as "the core infrastructure for institutional-grade crypto trading security."

• Finance Magnates (September 2025) : Calls ClearLoop the best practice for addressing exchange risks.

8. Advantages and Disadvantages

Advantages

• ClearLoop reduces counterparty risk;

• High custodial insurance coverage;

• Wide compliance coverage;

• Good customer reputation.

insufficient

• High cost, suitable for large institutions;

• The number of exchanges connected is limited;

• The integration period is approximately 4–6 weeks.

IX. Applicable Scenarios and Risk Warnings

Suitable

• Hedge funds and asset management institutions;

• Exchanges;

• High net worth clients and family offices.

Risk Warning

• High cost pressure;

• Over-reliance on ClearLoop may create concentration risk.

10. Future Development Trends

• Expand into Asian and North American markets;

• Access to more exchanges;

• Strengthen DeFi and stablecoin support.

11. Conclusion

As a leader in digital asset custody and clearing, Copper has gained high recognition among institutional clients thanks to its ClearLoop network .

The advantages are reduced exchange risks, high insurance coverage, and strong compliance ; the disadvantages are high costs and limited access .

Overall, Copper is an ideal choice for hedge funds, exchanges, and large institutions , and is suitable for clients who prioritize risk management and compliance .