Crypto exchange Bybit has collaborated with Zodia Custody, an institution-first digital assets platform supported by significant banks and financial organizations amid the recent $1.4 billion hack.
Bybit’s institutional clients will benefit from off-venue settlement and be safe from this partnership. In order to safeguard their money when trading digital assets, institutional investors today want strong security measures and regulatory compliance.
Bybit Partners with Zodia Custody
Zodia Custody’s Interchange solution meets these needs by providing independent asset custody through regulatory-grade infrastructure.
Institutional users can trade on Bybit immediately while their funds remain securely held off-exchange with Zodia Custody.Â
This design ensures full segregation, no co-mingling of funds, and minimal exposure to exchange-side risks.
Enhanced Security and Capital Efficiency
The new partnership allows clients to access Bybit’s advanced trading infrastructure without sacrificing safety. Pre-funding exchange accounts are not necessary for clients, which enhances operational integrity and capital efficiency.
Because the off-venue settlement mechanism keeps assets apart from the exchange, counterparty risk is greatly reduced. In the realm of digital assets, our partnership establishes a new benchmark for institutional-grade security.
Both firms emphasize that their approach is built for institutions rather than retrofitted for crypto markets. They believe that robust custody solutions can boost investor confidence and drive broader market adoption.
Zodia Custody is certified under SOC 1 Type I and II, which reinforces its commitment to security and regulatory compliance.
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Security Concerns in the Crypto Industry
Security has emerged as one of the prime concerns in the crypto industry. After the bifurcation hack that occurred in June last year, WazirX also joined forces with Zodia Custody to enhance its security measures.
This trend shows that leading digital asset platforms are increasingly prioritizing safety. The industry faced a severe setback during an attack on Bybit in February, where nearly $1.5 billion in digital assets were stolen.
This incident remains the largest hack of a crypto exchange in dollar terms. Such high-profile breaches have fueled the urgent need for secure, compliant infrastructure that can protect institutional assets.
Robust security measures are no longer optional but a critical requirement for market participation and investor trust.
Industry Leadership and Future Outlook
According to Julian Sawyer, CEO of Zodia Custody, institutional clients demand complete protection and control over their funds in addition to speed.
Sawyer explained that the partnership delivers a tailored solution that meets the complex needs of sophisticated investors.
Shunyet Jan, Head of Institutional and Derivatives at Bybit, echoed these sentiments by stressing the importance of compliance and innovation in the digital asset space.
Jan added that Bybit’s collaboration with Zodia Custody demonstrates their commitment to setting higher security standards. Both leaders believe that this partnership will pave the way for more secure trading environments in the digital asset market.
This collaboration marks a decisive shift towards secure and compliant digital asset infrastructure for institutional investors. The partnership between Zodia Custody and Bybit provides a trusted solution that protects capital while enhancing trading liquidity.
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