Bitget has launched the Bitget Open Custody Network, a framework designed to give institutional clients access to its trading and liquidity infrastructure while allowing them to retain their preferred third-party custody arrangements.

The network connects institutional investors, custody providers and asset partners, offering access to spot, spot margin and futures trading, subject to client eligibility, the selected custody solution and final agreements.

The launch comes as institutions increasingly focus on custody, settlement and risk management when allocating capital to digital assets.

A survey of 351 institutions conducted by Coinbase and EY-Parthenon found that 46% identified improvements in institutional-grade infrastructure as a key driver of increased crypto allocations.

Bitget’s approach aims to separate asset custody from trade execution, giving institutions greater flexibility over how they hold collateral and manage trading operations.

Bitget adds six custody and settlement partners

The network includes six solutions: Copper ClearLoop, Fireblocks Off Exchange, Cactus Custody Oasis, Bitfire PrimeMirror, OSL MirrorEX and Sygnum Protect.

Copper, Fireblocks, Cactus Custody, Bitfire and OSL provide third-party custody and off-exchange settlement (OES) routes. Sygnum Protect offers a different structure based on custody, pledging, and lending.

Under a typical OES arrangement, eligible client assets remain with a third-party custodian or in a designated collateral account.

Bitget provides trading credit according to the agreed terms, while profits and losses are settled through predefined on-chain or off-chain mechanisms.

The arrangements differ in their settlement schedules and operating requirements.

Copper ClearLoop offers a configurable four-hour settlement schedule, while Cactus Custody Oasis settles every eight hours. Bitfire PrimeMirror follows a daily settlement schedule at 10:00 UTC+8.

Fireblocks Off Exchange uses on-chain net settlement, with clients responsible for gas fees. OSL MirrorEX has a loss-triggered settlement mechanism that activates when losses reach or exceed 15% of total custodial assets.

Custody models target different institutional needs

The network is intended to accommodate institutions with different trading strategies, compliance requirements, and operational preferences.

Copper ClearLoop is designed for firms seeking multi-venue trading through a single custody relationship, while Fireblocks Off Exchange allows existing users to retain their wallet policies, multiparty computation setup and approval workflows.

Cactus Custody Oasis and Bitfire PrimeMirror offer off-chain settlement structures for institutions seeking to reduce on-chain operational requirements.

OSL MirrorEX is aimed at institutions prioritising Hong Kong’s regulated digital asset custody framework.

Sygnum Protect is intended for institutions requiring bank-grade custody.

Under this model, assets are held in a Sygnum Protect Portfolio and support trading through a pledge-and-loan mechanism rather than conventional mirrored trading credit.

Sygnum is a FINMA-supervised digital asset bank with a Swiss banking licence. Specific trading scope, loan-to-value ratios, fees and risk parameters depend on the asset and onboarding arrangements.

Institutions must assess collateral and settlement risks

Bitget said institutions should evaluate custody solutions based on their existing providers, trading strategies, collateral requirements and risk policies.

Account structures are another consideration. Across most live OES 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.

Some custody models restrict standard on-chain transactions once custody mode is activated, while OSL supports deposits and eligible profit withdrawals subject to controls.

Credit arrangements differ across providers. 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.

Institutions must confirm eligible collateral, credit ratios, settlement procedures, fees, financing costs, and regional restrictions before connecting to the network.

The framework expands custody options, but does not eliminate trading, counterparty, custody, or settlement risks.

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