Bybit Partners with Zodia Custody to Enhance Security for Institutional Clients
In a significant move to bolster its security measures following a recent incident, cryptocurrency exchange Bybit has announced a partnership with Zodia Custody. This collaboration comes on the heels of a staggering $1.45 billion hack that impacted Bybit just six weeks ago, marking it as one of the largest breaches in the history of crypto exchanges.
Zodia Custody, which is backed by a consortium of prominent traditional finance (TradFi) institutions, including Standard Chartered, specializes in providing secure custodial services designed specifically for institutional clients. The company offers features such as segregated custody and off-venue settlement, allowing users to trade seamlessly on Bybit while their assets are securely held within Zodia’s custody. This arrangement significantly mitigates the risks associated with on-exchange operations and prevents the co-mingling of funds, thereby enhancing overall security.
The February attack on Bybit, which resulted in nearly $1.5 billion worth of digital assets being stolen, has raised serious concerns about the safety of cryptocurrency exchanges and could potentially hinder the growth of institutional adoption in the digital asset space. Such alarming incidents underscore the critical need for robust custody solutions that meet the high standards expected in the traditional finance sector.
Julian Sawyer, the CEO of Zodia Custody, emphasized the importance of their services by stating that the offering is “custody and settlement built for institutions, not retrofitted for crypto,” in an announcement distributed via email on Thursday. This highlights Zodia’s commitment to providing secure and reliable custodial solutions tailored to the unique needs of institutional investors.
