Copper.co ClearLoop: Custody, Off-Exchange Settlement & API

The collapse of FTX and other exchanges showed: assets on a trading platform are not your assets. Institutional investors now demand zero counterparty risk. Copper.co solves this with ClearLoop — an off-exchange settlement network where funds are stored in MPC wallets under full client control, and trading happens without transferring assets to the exchange. We have completed 15+ custody integration projects, including ClearLoop for funds with portfolios from $50M.

What Integration Delivers

Without ClearLoop: a trader transfers $10M to Binance—assets are on the exchange. Risk: hack or bankruptcy. With ClearLoop: assets stay in Copper custody; only a credit line is on the exchange. Settlement occurs within ClearLoop several times per day (intraday netting). Result: zero counterparty risk. ClearLoop is 6 times faster than blockchain settlement and saves up to 60% on withdrawal fees compared to standard transfers.

For products: the custody API provides programmatic access to institutional-grade wallets with MPC, a policy engine for multi-level approval, and an audit trail for compliance. All in a single integration. According to Copper reports, clients save up to 60% on fees.

How ClearLoop Works

ClearLoop is a network where each trade is recorded in an off-chain ledger, and final settlement happens internally without blockchain transactions. This means even at massive volumes (typical clients manage portfolios from $10M), gas costs are zero. Per Copper documentation, ClearLoop supports intraday netting with settlement frequencies up to 6 times daily, reducing operational risk.

Copper API: Key Endpoints

Copper provides a REST API plus WebSocket for real-time events. Authentication: API Key + HMAC-SHA256 request signing. Below is a full client example and calls—note error handling and signing.

import crypto from 'crypto'; import axios from 'axios'; class CopperClient { private baseUrl = 'https://api.copper.co'; private signRequest( method: string, path: string, timestamp: number, body: string, ): string { const message = `${timestamp}${method.toUpperCase()}${path}${body}`; return crypto .createHmac('sha256', process.env.COPPER_API_SECRET!) .update(message) .digest('hex'); } async request<T>(method: string, path: string, data?: unknown): Promise<T> { const timestamp = Date.now(); const body = data ? JSON.stringify(data) : ''; const signature = this.signRequest(method, path, timestamp, body); const response = await axios({ method, url: `${this.baseUrl}${path}`, data: data || undefined, headers: { 'Authorization': `ApiKey ${process.env.COPPER_API_KEY}`, 'X-Signature': signature, 'X-Timestamp': timestamp.toString(), 'Content-Type': 'application/json', }, }); return response.data; } // Portfolio & wallets async getPortfolios() { return this.request('GET', '/platform/portfolios'); } async getWallets(portfolioId: string) { return this.request('GET', `/platform/portfolios/${portfolioId}/wallets`); } async createWallet(portfolioId: string, name: string, currency: string, type: 'hot' | 'cold') { return this.request('POST', '/platform/wallets', { portfolioId, name, mainCurrency: currency, type, }); } // Transactions & approval async createTransaction(portfolioId: string, currency: string, amount: string, toAddress: string, network: string, memo?: string) { return this.request('POST', '/platform/transactions', { type: 'withdrawal', portfolioId, currency, amount, toAddress, network, memo, }); } // ClearLoop async transferToClearloop(fromPortfolioId: string, toExchangeAccountId: string, currency: string, amount: string) { return this.request('POST', '/clearloop/transfers', { fromPortfolioId, toExchangeAccountId, currency, amount, }); } async getClearloopPositions(exchangeAccountId: string) { return this.request('GET', `/clearloop/positions/${exchangeAccountId}`); } } 

WebSocket: Real-Time Updates

import WebSocket from 'ws'; const ws = new WebSocket('wss://ws.copper.co/platform'); ws.on('open', () => { ws.send(JSON.stringify({ type: 'auth', apiKey: process.env.COPPER_API_KEY, signature: generateWsSignature(), timestamp: Date.now(), })); ws.send(JSON.stringify({ type: 'subscribe', channels: ['transactions', 'portfolio_balances'], portfolioIds: [portfolioId], })); }); ws.on('message', (data) => { const event = JSON.parse(data.toString()); if (event.type === 'transaction_update') { handleTransactionUpdate(event.payload); } if (event.type === 'balance_update') { handleBalanceUpdate(event.payload); } }); 

Compliance and Reporting

Copper provides audit-ready data: all transactions with timestamps, approver logs, and blockchain confirmations. Exporting transaction history for any period is a single API call. Each record includes initiator, approvers, timestamps, txHash. For regulatory reporting, connect a SIEM system via WebSocket. For an accurate cost and timeline estimate, contact us—we'll audit your infrastructure and propose the optimal solution.

Integration Process: Typical Stages

ClearLoop vs Standard Settlement

Common Integration Mistakes

1. Incorrect HMAC signing order. Timestamp and method must be in exact order. One second off—request rejected.
2. Ignoring webhooks. Transaction status changes asynchronously—relying only on API response is insufficient. Handle WSS events.
3. Skipping policy engine setup. Without proper limits and whitelists, transactions may stall in approval.
4. Starting without KYB. API access is granted only after full verification—beginning integration without KYB is futile.

Case Study: ClearLoop for a Hedge Fund. One of our clients—a hedge fund with $50M monthly volume—faced high withdrawal fees (up to 0.5% on Ethereum). We integrated ClearLoop in 8 weeks, configuring off-exchange settlement with Binance and Deribit. Result: zero counterparty risk, $120K annual savings on fees due to intraday netting. The entire audit trail is automatically exported to their SIEM.

What's Included

• Integration documentation (architecture, data schemas, sequence diagrams)
• SDK/adapter source code (TypeScript or Python on request)
• Access to Copper test sandbox
• Webhook integration for transaction status updates
• Load testing of ClearLoop channels
• One month of post-deployment support

Contact us for a preliminary project assessment. We'll help plan the architecture, prepare documentation, and get through KYB with minimal delays. Get a consultation—our engineers will review your current architecture and provide an integration roadmap.