Bitfinex Partners with Zodia Custody for Institutional Trading Boost
Bitfinex, a prominent cryptocurrency exchange, has recently announced a strategic collaboration with Zodia Custody, a move that aims to provide institutional clients with a seamless trading experience while ensuring the safety of their assets through Zodia's off-exchange settlement solution, Interchange.
In a statement shared with CryptoSlate on September 28, it was revealed that institutional clients who hold accounts with both Zodia Custody and Bitfinex can now effortlessly mirror their custodial assets onto the cryptocurrency exchange for trading purposes.
This integration brings added convenience to Zodia Custody users, eliminating the need for actual asset transfers. The settlement resulting from these trading activities will occur periodically on the blockchain, streamlining platform interaction and enhancing efficiency.
Bitfinex emphasizes that this partnership underscores its ongoing commitment to separating trading and custodial functions, a strategic move aimed at bolstering security and strengthening the overall market structure.
Moreover, this collaboration with Zodia Custody, a UK-licensed entity, reflects Bitfinex's continued efforts to collaborate with reputable custodians. It follows prior partnerships with esteemed custodial partners, including Koine in 2020 and Digivault in 2022.
Bitfinex's Chief Technology Officer, Paolo Ardoino, commented on the partnership, stating, "We are committed to shaping the future of digital market infrastructure and enabling institutional customers to thrive in this space. Working with Zodia Custody is a significant part of that strategy, and together we can look to enable even more institutions to enter or further participate in digital assets."
Julian Sawyer, representing Zodia Custody, described Interchange as an essential tool for digital asset investors, emphasizing, "Interchange has been designed from the ground up to provide a better, more robust approach to custody when trading through exchanges—this is custody, without compromise… This isn't a 'nice to have' but an absolute requirement."
Earlier in the month, Zodia Custody, backed by Standard Chartered, launched its custodial services in Singapore, providing digital asset custody solutions for financial institutions operating in the Asian country.
This collaboration between Bitfinex and Zodia Custody represents a significant step forward in making the cryptocurrency market more accessible and secure for institutional investors, further solidifying the infrastructure that supports the growing interest in digital assets among traditional financial players.