Bitget broadens institutional custody access with six distinct settlement routes

Bitget presented its Open Custody Network on 15 October, connecting institutional clients’ chosen custodians and asset partners to its trading services. The six-partner framework offers a route into the venue for firms whose existing custody policies would otherwise complicate onboarding.[1]

Five partners provide off-exchange settlement, while Sygnum Protect uses pledged assets and financing. Product access and eligibility are agreed for the selected route. The operating differences are substantial: collateral can support trading through different credit ratios, approval processes and settlement clocks.[1]

Settlement timing is part of the funding decision

OSL settles losses toward Bitget, while eligible profits can be withdrawn from the exchange. Its threshold triggers a settlement movement; it does not forgive smaller losses or define liquidation. A trading desk still needs to track its exposure between those movements.[2]

Collateral value and trading credit can differ

Fireblocks’ own documentation explains the underlying separation. A collateral vault uses a jointly controlled multiparty-computation wallet to lock assets and mirror their value to the connected exchange account. The venue can verify onchain collateral without receiving the principal into its ordinary trading wallet. This supports trading while keeping asset movement subject to the shared-control arrangement.[3]

Bitget’s implementation may provide less than 1:1 trading credit. Its guide also gives clients a usual two-hour window to sign loss settlement; Bitget’s Collateral Signer may co-sign if they do not, while rejection can open a dispute process. The signing timetable therefore belongs in the institution’s operating plan.[1]

The economic comparison extends beyond the custody bill. Staff availability around settlement, collateral left unused by a credit discount and the timing of available profits can all affect how much cash a strategy must keep ready. A low explicit fee can coexist with a higher working-capital requirement. That is an operating-cost calculation for the institution, rather than a ranking the network announcement can supply.[1][3][2]

Sygnum adds a financing structure

Sygnum announced its Bitget connection on 24 September. The bank said clients could retain collateral in its custody while supporting exchange trading, and could use US Treasuries whose income could offset some service costs. The broader October presentation thus brings an existing bank connection into the network, alongside other custody arrangements.[4]

The bank describes its custody framework as keeping client assets off its balance sheet and legally segregated under Swiss law. That is the stated custody arrangement; the asset still has to be accepted as collateral and made available to the trading relationship.[4]

Bitget’s operating notice specifies a pledge-and-loan process, with spot-asset financing tied to asset-specific loan-to-value terms. An institution considering Treasuries consequently has three related numbers to assess: the asset’s income, the borrowing amount it supports and the financing charge. The public documents do not give a common tariff for that comparison.[2][4]

For a strategy with a fixed funding requirement, keeping collateral at a preferred institution can simplify custody governance while leaving a separate liquidity task. The team needs to know which holdings can fund positions now, how quickly extra collateral can be mobilized, and who can approve settlement. That practical funding plan is where the network’s wider choice becomes useful.[3][4]

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