Bybit has teamed up with Zodia Custody to offer specialized custody solutions for its institutional clients.
The cryptocurrency exchange Bybit revealed in a press announcement on Thursday that it has formed a new alliance with Zodia Custody to deliver segregated custody services along with off-exchange settlement options for institutional investors.
In an April 3 statement, Bybit expressed that through this partnership, its institutional division, known as Bybit Institutional, aims to provide transparent fee structures and lower exposure risks for its clients targeting larger investments.
Zodia Custody, established in 2020, specializes in cryptocurrency custody services and is backed by major entities like Standard Chartered and SBI Holdings. A prominent advantage of the new collaboration, as highlighted by Bybit, is “Independent Custody,” which allows investors to trade on Bybit while their assets remain securely held with Zodia Custody, ensuring “full segregation and preventing co-mingling through the Interchange solution.”
This arrangement enables institutional clients to conduct trades on Bybit while their assets are safeguarded with Zodia Custody, guaranteeing complete segregation and preventing co-mingling, as noted in the announcement. Bybit further asserts that due to Zodia’s services, institutional clients are no longer required to pre-fund exchange accounts, which “reduces exposure to exchange-related vulnerabilities and enhances capital efficiency.”
In late February, Bybit fell victim to a sophisticated cyber-attack orchestrated by North Korean hackers, resulting in the theft of approximately $1.46 billion in cryptocurrency. The breach reportedly occurred via the compromise of an employee’s computer at Safe, the technology provider for Bybit. Shortly after the incident, Bybit’s CEO Ben Zhou mentioned that around 20% of the stolen assets had become untraceable because of the hackers’ use of mixing services. However, Zhou later stated that 88% of the stolen funds from the exchange remain traceable.