The cryptocurrency exchange Bybit, recently affected by a $1.45 billion breach six weeks ago, has partnered with Zodia Custody to enhance security measures for institutional clients.
Supported by a group of prominent traditional finance (TradFi) firms, including Standard Chartered, Zodia provides segregated custody along with off-exchange settlement options.
This arrangement allows users to trade on Bybit while their assets are securely held in Zodia’s custody, thereby minimizing exposure to on-exchange risks and avoiding the mixing of funds.
The attack on Bybit in February resulted in the theft of nearly $1.5 billion in digital assets, marking it as the largest hack of a cryptocurrency exchange in terms of monetary value.
Such incidents pose significant challenges to the potential for increased institutional adoption of digital assets, thus highlighting the need for custody services similar to those found in the traditional finance sector.