Bitget has rolled out a new way for institutions to trade on its platform without handing over custody of their crypto. Announced November 5, the Open Custody Network (OCN) links external banks and institutional custodians directly to Bitget’s trading engine via an asset-mirroring system — letting eligible users access spot, margin and futures liquidity while their underlying assets stay with third-party custodians. Why it matters - The OCN targets market makers, asset managers and other institutional traders who want to keep existing custody relationships but still tap exchange liquidity and trading tools. - Instead of the usual model where users deposit crypto into wallets controlled by an exchange, Bitget’s asset mirroring maps balances held by participants’ custodians to trading accounts on Bitget. Orders execute on the exchange, but collateral remains off-platform. - Product availability (spot, margin, futures) depends on each custodian’s settlement model and the chosen financing arrangement. How the network works (and who’s in it) Bitget’s launch builds on prior institutional custody integrations and supports multiple third‑party providers with differing settlement mechanics. Partners announced earlier include: - Copper ClearLoop — lets eligible assets in Copper custody support trading credit across venues; Copper has been expanding its institutional footprint, entering the U.S. in August after its American unit became an SEC-registered broker‑dealer and FINRA member. - Cactus Custody Oasis — supports spot, spot-margin and futures with off‑chain settlements every eight hours. - Bitfire PrimeMirror — uses daily settlement at 10:00 UTC+8. - OSL MirrorEX — employs a loss-triggered settlement: settlements kick in if trading losses reach at least 15% of custodial assets. - Fireblocks Off Exchange — part of the broader connectivity suite (details vary by provider). - Sygnum Protect — lets customers pledge assets held at Sygnum Bank (including BTC, ETH, stablecoins, USD and U.S. Treasuries) to obtain financing; requests are routed through the customer’s Sygnum relationship manager and typically take about one business day to process. Different providers offer distinct settlement and financing models — some mirror collateral balances directly for trading, others provide custody-backed financing — giving institutions flexibility to match their operational and risk requirements. Context and credibility Bitget presents the OCN as a way to reduce asset concentration on exchanges while preserving access to liquidity and capital efficiency. “We challenge the assumption that users must place their assets in an exchange’s custody to access its trading capabilities,” CEO Gracy Chen said, summarizing the company’s slogan: “Assets in Bank, Tradings on Bitget.” The move comes as custodial separations attract more attention across crypto and traditional finance. Bitget itself faced scrutiny after a September security breach that hit its hot and warm wallets for $387.5 million; the exchange said customer balances were unaffected, that its protection fund covered losses, and it has continued to publish reserve disclosures — its October 30 report showed a 115% reserve ratio for covered customer assets. Broader industry trend Major banks and custodians are also building custody services designed to work alongside trading and banking infrastructure. For example, Citi announced its Custody+ platform in August and plans institutional Bitcoin custody services before the end of 2026. Those moves mirror demand from institutional clients that want custody, settlement and trading services to interoperate with minimal operational friction. What this means for institutions For market makers and asset managers that need collateral across multiple markets, Bitget’s OCN aims to preserve existing approval, custody and treasury workflows while providing access to exchange execution. The variety of partners and settlement options means firms can pick arrangements that fit their risk tolerances, financing needs and operational cadence — from hourly or daily settlements to loss-triggered or pledge-based financing. Bottom line: Bitget’s Open Custody Network is part of a broader industry push to decouple safekeeping from execution, letting institutions trade on centralized venues without surrendering custody — a model likely to attract firms prioritizing control over their assets and flexibility in how those assets are deployed. Read more AI-generated news on: https://app.chaingpt.org/news