KEY TAKEAWAYS
- Bybit partners with Zodia Custody to enhance asset security for institutional clients.
- The collaboration offers independent custody and off-venue settlement through Zodia’s Interchange solution.
- This partnership aims to provide a secure and compliant infrastructure for cryptocurrency trading.
- Zodia Custody’s regulatory-grade infrastructure ensures asset segregation and reduces exchange-side risks.
Bybit, the second-largest cryptocurrency exchange by trading volume, has announced a partnership with Zodia Custody to enhance asset security for its institutional clients. The collaboration aims to provide independent custody and off-venue settlement through Zodia Custody’s Interchange solution, as detailed here.
Zodia Custody, a digital assets platform supported by financial giants such as Standard Chartered and Northern Trust, offers a regulatory-grade infrastructure designed to address security concerns in digital asset trading. The Interchange solution allows institutional investors to engage in trading on Bybit while ensuring their assets remain securely held with Zodia Custody. This setup ensures full segregation of assets, eliminates co-mingling, and significantly reduces exposure to exchange-side risks.
Julian Sawyer, CEO of Zodia Custody, emphasized the importance of security and control for institutional clients, stating that the partnership with Bybit delivers tailor-made solutions to enhance security and protect capital. Shunyet Jan, Head of Institutional and Derivatives at Bybit, highlighted the exchange’s commitment to compliance and innovation, noting that Zodia Custody’s reputation as a trusted custodian makes it an ideal partner.
The partnership is seen as a significant step toward establishing secure and compliant infrastructure in the cryptocurrency markets, allowing institutions to trade efficiently without compromising on safety. Zodia Custody, certified under SOC 1 Type I and II, serves a range of regulated financial institutions, ensuring trust and transparency at scale.
Why This Matters: Impact, Industry Trends & Expert Insights
Bybit’s partnership with Zodia Custody aims to enhance asset security for institutional clients by providing independent custody and off-venue settlement solutions. This collaboration seeks to address security concerns and reduce exchange-side risks for institutional investors.
Recent industry reports indicate that independent custody solutions are increasingly crucial for institutional crypto investments as they offer secure and compliant bridges between traditional finance and digital assets. This aligns with Bybit and Zodia Custody’s efforts to enhance security and compliance for institutional clients.
A crypto.news report highlights that the partnership between Bybit and Zodia Custody is seen as a significant move to enhance crypto security for institutional clients, providing segregated custody and reducing exchange-side vulnerabilities. This supports the initiative to increase trust and transparency in the digital asset space.
Explore More News:
Disclaimer: The views expressed in this article are those of the authors and do not necessarily reflect the official policy of CoinsHolder. Content, including that generated with the help of AI, is for informational purposes only and is not intended as legal, financial, or professional advice. Readers should do their research before taking any actions related to the company and carry full responsibility for their decisions.
