Crypto exchange Bitget is restructuring its trading infrastructure in its ninth year to focus on institutional clients through expanded multi-custody models and off-exchange settlement integrations. The shift aligns with research from Coinbase and EY-Parthenon, which surveyed 351 firms and found that nearly half of institutions planning to add digital asset exposure in 2026 cite improved infrastructure as a primary driver.
Key Takeaways
- 61% of invested institutional crypto funds use more than one custodian to mitigate venue-level risks.
- 55% of traditional hedge funds held digital assets in 2025, up from 47% in 2024, according to AIMA and PwC data.
- Bitget has integrated multiple custody partners, including Sygnum, Copper ClearLoop, Fireblocks Off Exchange, Cactus Custody Oasis, OSL MirrorEX, and Bitfire PrimeMirror.
Off-Exchange Settlement and Institutional Trading Mechanics
Off-exchange settlement allows funds to store assets with independent third-party custodians while using locked balances as trading credit on exchanges. Profits and losses are settled at fixed intervals rather than immediately, reducing direct exposure to venue counterparty risk. Institutional interest in these mechanics reflects broader market momentum following the end of previous market declines, detailed in discussions surrounding institutional market sentiment.
According to the 2025 AIMA and PwC Global Crypto Hedge Fund Report, 55% of traditional hedge funds held digital assets in 2025, up from 47% a year earlier. While 71% of non-invested funds plan to enter the space, most existing allocations remain under 2% of total assets. As position sizes grow, capital efficiency and collateral management have become central to execution strategies.
Bitget Expands Institutional Custody Partnerships
To capture varied institutional segments, Bitget is broadening its custody access rather than mandating a single provider. In the Coinbase and EY-Parthenon survey, 61% of invested firms reported using multiple custodians to minimize concentration risks. Traditional asset managers bound by fiduciary asset-segregation rules require regulated options, leading Bitget to establish a live relationship with Sygnum while engaging Komainu—a regulated custodian founded by Nomura, CoinShares, and Ledger.
For high-frequency quantitative firms and market makers, Bitget relies on its long-standing integration with Copper ClearLoop, which also connects to venues like Coinbase International, Kraken MTF, and Deribit. Bitget’s custody network also includes Fireblocks Off Exchange, Cactus Custody Oasis, OSL MirrorEX, and Bitfire PrimeMirror as part of its broader strategy to accommodate tokenized traditional assets alongside crypto. Similar expansions in platform infrastructure reflect trends seen across major global exchange platforms.
Why It Matters
Separating trading execution from asset custody brings crypto infrastructure closer to traditional equity markets, lowering operational barriers for risk-averse institutional managers. However, while off-exchange settlement reduces venue-specific counterparty risk, it consolidates operational reliance onto a narrow group of third-party custodians like Copper and Fireblocks. If an outage or liquidity freeze affects a central settlement provider during peak market volatility, systemic risk could cascade across multiple connected exchanges simultaneously.
