The tie-up will allow institutional clients of Komainu to trade over ClearLoop, the firm said. The clients will be able to benefit from regulated, on-chain custody provided by Komainu, while at the same time gaining access to off-exchange settlement through the network.

Custody and counterparty risk have become increasingly important considerations for digital asset investors following the collapse of crypto exchange FTX last year. ClearLoop allows investors to hold on to assets until just before a trade is executed by connecting multiple exchanges in one trading network, reducing their counterparty risk and eliminating the need to transfer assets to an exchange-based wallet.

“Together with Copper, we are bringing tried and tested best practices and infrastructure from traditional markets to meet the growing demand of digital asset participants to diversify counterparty risk,” said Komainu CEO Nicolas Bertrand.

The partnership is subject to legal documentation being finalized.

Komainu joined the U.K.’s crypto register earlier this month, after successfully registering with the Financial Conduct Authority (FCA).

Read more: Nomura-Backed Komainu Joins U.K. Crypto Register