Custody is a critical element of cryptocurrency storage, particularly for institutions that may manage client funds or hold significant assets of their own. One of the challenges of operating custodian services in a diverse market like crypto is maintaining security while providing convenient access to the tools and services clients demand.
In a major announcement, Zodia Custody unveiled that BitMEX will join Interchange, Zodia Custody’s institutional settlement network. Through this partnership, users can trade directly on BitMEX while Zodia Custody securely stores their assets; they never have to transfer crypto off-site, enhancing convenience without compromising security.
What is BitMEX?
Founded in 2014, BitMEX is a time-tested crypto derivatives exchange focused on derivatives trading. It offers hundreds of crypto assets, as well as perpetual/futures contracts, a spot market, and access to leveraged stocks via a Traditional Finance (TradFi) perpetuals tool.
Being an all-in-one exchange designed for trading and general use, BitMEX is suitable for a broad range of traders. It stores 95% of client funds in cold storage, boasts sub-4ms trade latency, and has never been hacked, making BitMEX a trusted custodian and a strong option for traders.
Mark Collins, BitMEX’s Head of Custody, shared this comment related to the partnership:
“Our partnership with Zodia Custody cements the position of BitMEX as a premier institutional-grade trading platform. By incorporating a dedicated custodian that bridges traditional finance and the crypto market, we hope to reinforce our commitment to providing the security, transparency, and compliance required to serve our global professional client base.”
What is Zodia Custody?
Zodia Custody is an institutionally-focused digital asset platform. It assists institutions in navigating the complex digital asset landscape by providing access to innovative products/services within a secure, regulated (FCA, CSSF, MAS, FSRA, ASIC) custodian environment. Zodia Custody has attracted investment from prominent firms, including Standard Chartered, SBI Holdings, and National Australia Bank.
The company offers a variety of valuable services, including cryptocurrency custody, staking, swapping, and trading. The latter of which takes place on the Zodia Custody Interchange, where BitMEX has just been integrated.
Discussing the interchange network, Zodia Custody’s Head of Interchange Product, Wing Cheah, said:
“In successfully launching BitMEX on the Interchange network, our clients gain direct access to a leading derivatives exchange without compromising custody of their assets. This integration provides clients with greater flexibility, more trading options, and the peace of mind that their assets remain safely in cold storage until settlement.”
Looking Ahead
The Zodia Custody-BitMEX partnership will open doors for both platforms and their customers. Institutional clients benefit from secure access to new centralized exchanges and Over-The-Counter (OTC) markets. BitMEX can tap into a new enterprise-grade source of fee revenue and liquidity to further develop its offerings.
Interchange networks are rapidly growing in popularity and value. They enable access to multiple platforms/services while locking collateral and utilizing asset mirroring to keep funds secure until settlement, reducing counterparty risk. Looking forward, it’ll be interesting to see how Zodia Custody evolves for institutional clients and whether similar services appear for retail clients.
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