Bitget Links Institutional Trading to External Custodians With New Network

On November 5, Bitget introduced its Open Custody Network, connecting external banks and institutional-grade custodians with its trading ecosystem for eligible participants. This newly launched framework allows institutional clients to execute trades on Bitget without depositing their funds directly into the exchange’s custody.

This launch coincides with regulatory headwinds for Bitget in Thailand, where the local SEC initiated a criminal complaint against the platform operator and established a December 5 access block, as reported by CoinDesk. This regulatory enforcement action targets Bitget’s activities within Thailand and operates independently of the newly introduced custody network.

Bitget Open Custody Network Separates Trading From Asset Custody

In its November 5 announcement, Bitget detailed the Open Custody Network (OCN) as a mechanism connecting its trading engine with external banking institutions and institutional-grade custodians. Through this setup, qualified users gain access to the exchange marketplace while storing their capital with an independent custodian.

This division is designed for institutional entities that prefer to separate trade execution from asset safekeeping. When a single exchange manages both responsibilities, users depend entirely on that platform’s underlying technology, operational framework, governance standards, and financial stability for both trading operations and fund security.

By linking its trading architecture to third-party custody partners, OCN splits these duties, essentially offering off-exchange cryptocurrency custody solutions to institutional participants. The exact features and safeguards depend on the specific custodian and the operational framework chosen.

Settlement Terms Define OCN’s Risk

Storing digital assets with a third-party custodian does not completely isolate them from the exchange. Factors such as settlement mandates, pre-approved transfers, credit facilities, or shared operational providers can still influence asset movement, meaning that control structures and settlement conditions remain critical components of the model.

Institutional clients must obtain explicit details regarding legal ownership, the authority to withdraw funds, and contingency protocols if Bitget halts operations. Additionally, they must evaluate how the infrastructure handles collateral representation, position reconciliation, and trade settlement.

According to a report on the launch by NewsBTC, OCN relies on its specific custody and settlement architecture to establish its protective measures. Bitget has not indicated that all participating custodians offer identical services, nor is the network accessible to all classes of users.

Institutions Need Custodian and Withdrawal Details

Organizations evaluating the service should verify which custodians are integrated and identify the jurisdictions where the offering is active. Agreements must explicitly outline asset partitioning, withdrawal protocols, settlement mechanics, and recovery pathways in the event that Bitget or a custody partner encounters financial or operational distress.

Independent security audits and transparent legal agreements remain essential. Physical location of the assets is only one element; institutions must also understand who holds authorization to transfer them and under what circumstances. The ultimate effectiveness of OCN relies on its ability to bridge external safekeeping with Bitget’s trading environment without compromising oversight of client funds.

?FAQ

01What is Bitget’s Open Custody Network?

OCN links external banks and institutional-grade custodians to Bitget’s trading infrastructure. Eligible institutions can trade through Bitget while keeping their assets with a separate custody provider.

02Who can use the Open Custody Network?

Bitget positions OCN for eligible users seeking an institutional trading and custody arrangement. Access and services vary with the participating custodians and operating structure.

03Does external custody prevent Bitget from affecting assets?

Not necessarily. Settlement obligations, pre-authorized transfers, credit arrangements or shared providers may still determine who can control or move assets.

04Which settlement details matter for OCN users?

Institutions need clarity on how the system represents collateral, reconciles positions and settles trades. Legal title and withdrawal authority also need to be established.

05What should institutions check before using OCN?

They should review the participating custodian, applicable jurisdiction, asset segregation, withdrawal authority and settlement process. Reconciliation procedures and rights to retrieve assets if Bitget or a custody partner fails also matter.

This article is for information only and is not financial advice.