Bitget announced on November 5 the launch of its Open Custody Network, a network designed to connect external banks and institutional custodians to its trading infrastructure for eligible clients. The aim is to allow institutions to trade on the platform while relying on a third party to safeguard their assets, reducing some of the risks associated with concentrating trading and custody within the same institution. The arrangement will require reliable mechanisms for representing collateral and settling trades, particularly given counterparty exposure and settlement finality considerations. The announcement does not establish whether all partners provide identical safeguards or whether every client is eligible. Institutions will therefore need to examine legal title, withdrawal conditions, position reconciliation and provisions for a platform or partner failure.
Source: Read the original article
