Crypto exchange Bybit has partnered with Zodia Custody to provide improved security and segregated asset storage for institutional investors.
The partnership, announced on April 3, means that institutional customers can trade on Bybit while having their assets securely held with Zodia Custody.Â
The partnership also brings off-venue settlement, where clients can retain control of their assets without pre-funding exchange accounts, which improves security and capital efficiency.
Bybit Institutional, the exchange’s institutional division serving large-scale investors, strives to provide transparent fees, deep liquidity, and high security. Through this alliance, it aims to mitigate concerns regarding asset security by keeping funds separately held, minimizing exposure to exchange-side risks.
Zodia Custody, founded in 2020 and backed by major firms like Standard Chartered and SBI Holdings, is a trusted choice for institutional investors because it provides high-level security and compliance for storing digital assets.
The collaboration follows a significant security breach at Bybit in February in which $1.46 billion worth of cryptocurrency was stolen by North Korean hackers.
The hackers were said to have launched the attack by taking over the computer of an employee at Safe, the technology firm that supplies technology to Bybit. Even though Bybit has been able to recover 88% of the stolen funds, the incident generated concerns regarding exchange security.
Bybit is working with Zodia Custody to make trading safer for institutional clients. This partnership helps keep their assets secure and separate from exchange funds, building trust in Bybit’s platform. It also meets growing rules that require better protection for investors’ funds in the crypto industry.
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