Bitget launched the Bitget Open Custody Network, a framework designed to let institutional clients access its trading and liquidity infrastructure while keeping control of their preferred third-party custody arrangements. The initiative is aimed at institutions seeking greater flexibility in how they hold collateral, manage settlement, and align risk controls as they expand digital-asset allocations.
The network connects institutional investors, custody providers, and asset partners, enabling access to spot, spot margin, and futures trading, subject to client eligibility, the selected custody solution, and final contractual terms.
Key takeaways
- Price move: No market price or trading performance figures were provided in the announcement.
- Catalyst: Bitget introduced a custody-and-trading separation model through its Open Custody Network.
- What it changes: Institutions can keep third-party custody preferences while using Bitget’s trading and liquidity setup.
- Operational impact: Settlement timing and credit structures vary by custody route, with different on-chain and off-exchange settlement mechanics.
- Implication for investors: The move underscores how custody, settlement, and risk management are becoming core criteria for institutional capital in digital assets.
What drove the launch
Bitget positioned the Open Custody Network as a response to growing institutional focus on the end-to-end mechanics of digital-asset trading—particularly custody, settlement, and operational risk controls. According to a survey of 351 institutions conducted by Coinbase and EY-Parthenon, 46% of respondents cited improvements in institutional-grade infrastructure as a driver of increased crypto allocations.
Bitget’s framework is structured to separate custody from trade execution, aiming to give institutions more room to select collateral-holding and risk processes that match their internal policies and compliance requirements, rather than forcing a single custody model.
Six custody and settlement partners, multiple settlement designs
Bitget said the network includes six custody and settlement solutions: Copper ClearLoop, Fireblocks Off Exchange, Cactus Custody Oasis, Bitfire PrimeMirror, OSL MirrorEX, and Sygnum Protect.
According to the announcement, Copper, Fireblocks, Cactus Custody, Bitfire, and OSL provide third-party custody and off-exchange settlement routes. Sygnum Protect follows a different structure based on custody, pledging, and lending.
Under typical off-exchange settlement arrangements, eligible client assets remain with a third-party custodian or in a designated collateral account. Bitget provides trading credit under agreed terms, while profits and losses are settled using predefined on-chain or off-chain mechanisms.
The routes differ in settlement schedules and operational requirements, including:
- Copper ClearLoop: a configurable four-hour settlement schedule.
- Cactus Custody Oasis: settlement every eight hours.
- Bitfire PrimeMirror: a daily settlement schedule at 10:00 UTC+8.
- Fireblocks Off Exchange: on-chain net settlement, with clients responsible for gas fees.
- OSL MirrorEX: loss-triggered settlement that activates when losses reach or exceed 15% of total custodial assets.
How the custody models target different institutional needs
Bitget said the network is intended to support institutions with varying trading strategies, compliance obligations, and operating preferences. The company described distinct design goals across its partner routes.
- Copper ClearLoop: geared toward firms seeking multi-venue trading through a single custody relationship.
- Fireblocks Off Exchange: designed to allow existing users to retain wallet policies, multiparty computation setup, and approval workflows.
- Cactus Custody Oasis and Bitfire PrimeMirror: structured for institutions seeking to reduce on-chain operational requirements through off-chain settlement approaches.
- OSL MirrorEX: aimed at institutions prioritising Hong Kong’s regulated digital asset custody framework.
- Sygnum Protect: oriented toward bank-grade custody via a pledge-and-loan mechanism rather than conventional mirrored trading credit.
In the Sygnum Protect model, Bitget said assets are held in a Sygnum Protect Portfolio and support trading through pledge-and-loan mechanics. Sygnum is described as a FINMA-supervised digital asset bank with a Swiss banking licence, and Bitget noted that specific trading scope, loan-to-value ratios, fees, and risk parameters depend on the asset and onboarding arrangements.
What institutions must evaluate before connecting
Bitget warned that institutions should assess custody solutions against their own providers, trading strategies, collateral requirements, and risk policies. The company also highlighted account structure, settlement timing, deposit and withdrawal constraints, and credit terms as key variables across custody routes.
According to Bitget, in most live off-exchange settlement routes the master account is linked to the custody arrangement, while sub-accounts can trade under applicable rules. Profits and losses are generally aggregated and settled at the master-account level.
Deposit and withdrawal restrictions also vary by model. Bitget said some custody modes restrict standard on-chain transactions once custody mode is activated, while OSL supports deposits and eligible profit withdrawals subject to controls.
Credit structures differ as well. Bitget said Copper, Cactus Custody, Bitfire, and OSL offer 1:1 trading credit against eligible delegated balances. Fireblocks credit is determined during onboarding and may be lower, while Sygnum uses asset-specific loan-to-value ratios.
Before connecting to the network, Bitget said institutions should confirm eligible collateral, credit ratios, settlement procedures, fees, financing costs, and regional restrictions. The framework expands custody options, but Bitget said it does not eliminate core trading, counterparty, custody, or settlement risks.
Looking ahead, institutions evaluating the Open Custody Network will likely focus on operational fit—particularly settlement cadence, withdrawal controls, and how credit is calculated under each partner route. Bitget’s next key milestones will be the onboarding terms for eligible clients and the practical implementation details of each settlement and credit mechanism as firms connect the network.
