Bitget Launches Open Custody Network for Off-Exchange Asset Trading

This architecture allows market makers and asset managers to mitigate custody concentration risks by keeping assets with third-party providers such as Copper, Cactus Custody, Fireblocks, OSL, and Sygnum Bank. By decoupling the safekeeping of digital assets from the execution platform, the service addresses long-standing institutional concerns regarding exchange-held collateral.

Bitget CEO Gracy Chen stated the initiative aims to dismantle the traditional requirement that users must surrender asset custody to access exchange capabilities. The network operates through varied settlement models tailored to specific custodians; for instance, Sygnum Protect enables clients to pledge assets held in Swiss banking accounts to secure trading financing. Other partners, including Cactus Custody and OSL, employ distinct schedules ranging from eight-hour settlement cycles to loss-based trigger mechanisms. This development arrives as major financial players like Citigroup also move to integrate digital asset custody into broader, traditional investment frameworks.