Overview
Cobo SuperLoop is the world's first off-exchange settlement network that enables institutions to trade on exchanges while retaining full control of their funds through cutting-edge MPC-based co-managed custody. With SuperLoop, asset managers can trade with confidence and efficiency, minimizing counterparty risk and maximizing capital efficiency. Cobo SuperLoop will be available on supported exchanges to all Cobo custody clients under our Full Custody solution and Co-managed MPC Custody solution.
Key Benefits
For Asset Managers
- Increased Confidence: Trade on exchanges with greater confidence, knowing that you have full control of your funds.
- Minimized Counterparty Risk: Remove the need to pre-fund on exchanges, reducing exposure to counterparty risk.
- Capital Efficiency: Deploy funds without delays and risks associated with on-chain transfers.
- Enhanced Security: Under the MPC-based co-managed custody setup, no single party can unilaterally move funds, ensuring the security of your assets.
- Regulatory Compliance: SuperLoop adds an extra layer of security and helps meet regulatory requirements.
For Exchanges
- Increased Trading Activity: Attract more asset managers and higher trading volumes by eliminating pre-funding requirements.
- Counterparty Risk Mitigation: Ensure asset managers can meet their obligations before executing trades, mitigating counterparty risk.
- Regulatory Compliance: SuperLoop enhances security measures and supports compliance with regulatory standards.
How It Works
Pre-trade
- Asset Manager links exchange account(s) to SuperLoop on Cobo Custody Web
- Asset Manager requests to mirror coins on linked exchange account via Cobo
- Coins will be locked and mirrored 1:1 on linked exchange account
- Asset Manager may request to increase/decrease (i.e. withdraw) the amount of mirrored coins as and when desired
During-trade
- Asset Manager submits trade orders to Exchange and trades as per usual
Post-trade
- Automated settlement at Periodic Settle Time (or Asset Manager initiates early settlement on-demand via Cobo)
- Exchange provides net settlement amount to Cobo via API, which is then approved by Asset Manager
About Cobo
Cobo is a globally trusted leader in digital asset custody solutions. As the world’s first omni-custody platform, Cobo offers the full spectrum of solutions from full custody, co-managed MPC custody, to fully decentralized custody as well as wallet-as-a-service, advanced DeFi investment tools and an off-exchange settlement network. Trusted by over 500 institutions with billions in assets under custody, Cobo inspires confidence in digital asset ownership by enabling safe and efficient management of digital assets and interactions with Web 3.0. Cobo is SOC2 Type 1 and Type 2-compliance-certified and licensed in 5 jurisdictions.
For more information, please visit www.cobo.com or contact us at [email protected].
