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Bitget launches Open Custody Network for trading without exchange custody
The network uses asset mirroring to let eligible institutional users trade spot, margin and futures while assets stay with external custodians.
Key takeaways
- Custody split from trading. Assets remain with participating third-party custodians while eligible users access Bitget's trading markets.
- Built on existing partners. The network extends Bitget's earlier custody arrangements with Copper, Cactus Custody, Fireblocks, OSL and Sygnum Bank.
- Aimed at institutions. Market makers and asset managers can keep their custody arrangements while deploying assets across trading strategies.
What happened
Bitget has introduced the Open Custody Network, a service that lets eligible users trade on its spot, margin and futures markets while their underlying assets remain with independent banks and institutional custodians, according to announcements reported by Crypto.news and CoinGape on November 5.
The network relies on asset mirroring, which links balances held by participating custodians to trading accounts on Bitget. Under the arrangement, the collateral backing a user's positions stays outside the exchange rather than being deposited into wallets controlled by the platform, as is typical in a conventional centralized exchange setup.
Bitget said the service is aimed at market makers, asset managers and other institutional participants that want to keep their existing custody relationships while using their holdings for trading. The products available to individual customers depend on the chosen custody provider and the applicable settlement arrangement, the company said.
The launch builds on custody infrastructure Bitget had already outlined. In an October 13 operational announcement, the exchange detailed partnerships including Copper ClearLoop, Cactus Custody Oasis, Fireblocks Off Exchange, OSL MirrorEX, Bitfire PrimeMirror and Sygnum Protect, each operating through different settlement models.
Why it matters
The service addresses a long-standing feature of centralized crypto exchanges: customers generally must deposit assets with the platform before they can place orders, combining safekeeping and execution in one place. The Open Custody Network separates those roles, allowing institutions to keep assets with third-party custodians while still reaching Bitget's liquidity.
For institutional traders, the arrangement is presented as a way to manage custody concentration risk and maintain established asset management and approval processes. Bitget CEO Gracy Chen said the company wants to challenge the assumption that users must place assets in an exchange's custody to access its trading capabilities, describing the approach as "Assets in Bank, Tradings on Bitget." The launch also comes as banks and crypto trading firms continue developing services that separate asset safekeeping from the venues where transactions are executed.
What the data shows
The custody partners operate under differing settlement terms. Copper ClearLoop allows eligible assets held in Copper's custody framework to support trading credit on Bitget. Cactus Custody Oasis supports spot, spot margin and futures trading with settlement every eight hours through off-chain transfers between custody accounts. Under OSL's arrangement, settlement is triggered when trading losses reach at least 15% of total custodial assets. Sygnum Protect lets customers pledge assets held with the Swiss bank to obtain financing for eligible trading activities, with Bitcoin, Ethereum, stablecoins, US dollars and US Treasury bonds listed as eligible assets or collateral.
Background
The announcement follows a period of heightened attention to exchange custody arrangements after Bitget suffered a security breach in September. According to Crypto.news, the exchange restored major cryptocurrency withdrawals after a $387.5 million breach involving its hot and warm wallet infrastructure; Bitget said customer account balances were unchanged and that its protection fund would cover the losses. Separately, Citigroup announced its Custody+ platform in August and outlined plans to introduce institutional Bitcoin custody services before the end of 2026.
What to watch
How the network's asset mirroring and the varying settlement models perform in practice will be a focus, particularly the conditions under which losses trigger settlement with individual providers. The extent to which institutional users adopt external custody trading rather than conventional exchange deposits may also shape how quickly similar offerings spread across other venues.
Questions readers ask
What is Bitget's Open Custody Network?
It is a service that connects assets held by participating external custodians to Bitget's spot, margin and futures markets through asset mirroring, so eligible users can trade without transferring their holdings into the exchange's custody.
Who can use the network?
Bitget said the service is designed for market makers, asset managers and other institutional participants. The products available to individual customers depend on their custody provider and settlement arrangement.
Which custodians are involved?
Bitget's existing custody arrangements include Copper, Cactus Custody, Fireblocks, OSL and Sygnum Bank, each operating through different settlement models.
