Bitget Is Changing How Institutions Hold and Trade Crypto
Key Summary
A recent survey by Coinbase and EY-Parthenon found that nearly half of institutions planning to add crypto exposure in 2026 cite better infrastructure as a reason, including improved custody, settlement, and risk controls. Crypto exchanges are adapting to meet the demands of institutional investors, with Bitget being one of the exchanges making significant changes to its custody model.
The Shift in Focus
The question of how institutions hold and trade crypto has shifted from what an exchange lists to how it lets capital move in and out. Equity markets have run on the split between broker and custodian for decades, and now crypto exchanges are rebuilding around the same demand.
The Importance of Custody
Custody arrangements are only the starting point, and asset managers, market makers, and other institutional investors arrive with different requirements. An exchange that wants their business has to adapt to each of them. Bitget is one of the exchanges making that adjustment. The company says institutional business is the focus of its ninth year.
Supporting Multiple Custody Models
Part of that is supporting more than one custody model instead of a single required setup. Bitget links the move to its Universal Exchange strategy, which already spans crypto and tokenized assets. This allows institutions to choose their preferred custodian and still access the exchange.
Off-Exchange Settlement
Off-exchange settlement separates where assets are held from where they are traded. A fund keeps its holdings with a third-party custodian, such as Copper or Fireblocks, and the exchange treats that balance as trading credit. This allows institutions to trade without handing over the keys to the exchange.
Reduced Risk and Capital Efficiency
The appeal of off-exchange settlement is capital efficiency and lower direct exchange exposure. Eligible collateral remains with the custodian, reducing the amount of client assets directly exposed to venue-level counterparty risk. Firms trading on several venues avoid moving collateral back and forth, which cuts both cost and operational risk.
Regulated Custodians and Market Makers
Regulated asset managers sit at one end of the spectrum, requiring an independent, regulated custodian before a trading venue is even considered. Market makers and quantitative firms sit at the other end, trading across many venues and caring about how fast collateral can be redeployed. Bitget works with regulated custody providers, including Sygnum and Komainu. The company is also engaging with regulated custodians such as CoinShares and Ledger.
Off-Exchange Settlement in Practice
Copper's ClearLoop now connects several venues, including Coinbase International, Kraken MTF, and Deribit. Fireblocks Off Exchange reaches several of the same exchanges. Bitget lists Cactus Custody Oasis, Fireblocks Off Exchange, OSL MirrorEX, and Bitfire PrimeMirror as further custody and settlement relationships.
Conclusion
The choice of custodian is becoming the new differentiator for exchanges, and the new concentration risk. Bitget's expansion of ties with regulated custodians is a priority. The company says different kinds of professional capital should reach the same markets without being made to hold assets the same way. A client that keeps its existing custodian can also avoid some asset transfers and operational steps.
Off-Exchange Settlement: What It Does and Does Not Do
Off-exchange settlement separates where assets are held from where they are traded. It does not remove market risk, and a losing position is still liquidated, whatever the collateral's location. The custodian also becomes a counterparty in its own right. Between settlement cycles, gains owed by the exchange are a claim rather than custody. This window is where the model gets tested.