Introduction to SuperLoop

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Key features

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For asset managers

• Increased confidence: Trade on exchanges with greater confidence and efficiency.
• Minimized counterparty risk: Remove the need to pre-fund on exchanges, reducing exposure to counterparty risk.
• Capital efficiency: Allocate assets to supported exchanges instantly, reducing delays from on-chain transfers.
• Regulatory compliance: SuperLoop adds an extra layer of security and helps meet regulatory requirements.

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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.

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How it works

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Pre-trade

• Asset managers link Exchange Wallets to SuperLoop on Cobo Portal.
  The Exchange Wallets must have already been set up. See Set up Exchange Wallets.
• Asset managers request to mirror assets on linked exchange accounts via SuperLoop. The mirrored assets will come from one of the asset managers’ chosen Custodial Wallets or MPC Wallets.
• Assets will be locked in SuperLoop and mirrored 1:1 on linked exchange accounts.

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During-trade

• Asset managers submit trade orders to the exchanges and trade as per usual.

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Post-trade

• Automated settlements take place periodically.
• Exchanges provide net settlement amount to Cobo.