Bitget Launches Open Custody Network to Separate Institutional Trading From Asset Storage

TL;DR: Bitget announced an Open Custody Network on November 5 intended to connect external banks and institutional custodians with its trading infrastructure. The arrangement aims to reduce the need to keep trading assets directly at an exchange, though the security benefits depend on the exact custody and settlement design. The largest crypto exchanges have historically offered trading and asset custody within the same service. That is convenient for customers, but it creates a concentration of risk: a platform failure can disrupt access to both execution and the underlying assets. Bitget says it wants to offer another model. In its November 5 release, the company introduced the Open Custody Network, or OCN, as a connection between external banks, institutional-grade custodians and Bitget’s trading infrastructure for eligible users. The stated goal is to make it possible to trade through the venue while relying on a separate custody provider. Why separation matters after major exchange incidents When trading and safekeeping sit in the same institution, a customer is exposed to that institution’s technology, operational controls, governance and financial health. Independent custody...