Bybit and Zodia Custody Partner to Enhance Asset Security

By: blockbeats|2025/04/03 18:45:03
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Article Source: Bybit

Zodia Custody, an institutional-grade digital asset platform backed by Standard Chartered, Northern Trust, SBI Holdings, National Australia Bank, and UAE-based NCB, has officially partnered with Bybit, the world's second-largest cryptocurrency exchange by trading volume, to jointly provide secure, segregated custody, and off-exchange settlement services to Bybit's institutional clients.

When venturing into the digital asset space, institutional investors require regulatory compliance and robust security measures to safeguard their capital. As industry requirements continue to escalate, the market is increasingly seeking more reliable infrastructure to address potential risks in exchange settlement, including centralized control and counterparty risk.

Zodia Custody's Interchange solution is built on regulatory-grade infrastructure and provides independent asset custody to address the aforementioned security issues. Through Interchange, institutional users can immediately deploy funds for trading on Bybit, while their assets remain securely held at Zodia Custody—ensuring full isolation, zero commingling, and significantly reducing exchange risk exposure. This design mitigates counterparty risk, and users no longer need to pre-fund their exchange accounts, enhancing capital efficiency and operational integrity.

This partnership elevates the security and compliance standards in the digital asset trading space, enabling institutional clients to benefit from the security of Zodia Custody's off-exchange settlement while utilizing Bybit's top-tier trading infrastructure.

Julian Sawyer, CEO of Zodia Custody, commented, "What institutional clients need is not just speed—they need to know that their assets are securely held off the exchange and fully within their control. As industry-leading institutions, Zodia Custody and Bybit have a shared responsibility to provide tailored solutions to enhance security and protect capital for the institutions using our services. This is exactly what our partnership offers. Through Interchange, we help Bybit's clients unlock trading liquidity without compromising custody standards, counterparty risk, or capital efficiency. This is custody and settlement designed for institutions, not retrofitted for cryptocurrencies."

Shunyen Jan, Head of Institutional and Derivatives at Bybit, added, "At Bybit, our mission is to deliver institutional-grade solutions that meet the evolving needs of sophisticated investors. Our collaboration with Zodia Custody underscores our commitment to compliance, security, and innovation in the digital asset space. Zodia Custody's well-established reputation as a trusted, highly regulated custodian makes it an ideal partner to safeguard our clients' assets while enhancing capital efficiency. Together, we are setting new standards and driving institutional adoption of digital assets."

Zodia Custody is SOC 1 Type I and II certified, fundamentally institution-built, serving globally regulated financial institutions, government entities, crypto platforms, and hedge funds in specific markets, delivering scalable trust, transparency, and uncompromising security.

This partnership marks a decisive shift in the crypto market towards secure, compliant infrastructure—where institutions can finally operate efficiently without compromising on security.

About Zodia Custody

It is an institutionally focused digital asset platform backed by Standard Chartered Bank, in collaboration with Northern Trust, SBI Holdings, National Australia Bank, and the UAE’s First Abu Dhabi Bank. By combining its custody, asset servicing, and settlement solutions with consultancy and middle-office operations, Zodia Custody enables global institutional investors to easily, securely, and uncompromisingly realize the full potential of digital assets' future. It operates under licenses granted by the Financial Conduct Authority, the Central Bank of Ireland, the Commission de Surveillance du Secteur Financier in Luxembourg, and the Hong Kong Companies Registry.

Zodia Custody implements the requirements of the Fifth Anti-Money Laundering Directive and applies the same anti-money laundering, financial crime compliance, and know-your-customer standards as Standard Chartered Bank. It enforces the requirements of the FATF Travel Rule. Zodia Custody Limited in the UK is registered with the Financial Conduct Authority as a crypto asset business under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. Zodia Custody (Ireland) Limited is registered with the Central Bank of Ireland as a VASP under the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 (as amended). Zodia Custody (Ireland) Limited was established in Ireland in August 2021 and is registered with CSSF in Luxembourg as a Virtual Asset Service Provider under Article 7-1(2) of the Law of 12 November 2004 on the fight against money laundering and terrorist financing. Zodia Custody (Hong Kong) Limited is registered with the Trust and Company Service Provider Registry for its digital asset custody activities under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO) Cap. 615, with license number TC009245.

About Bybit

Bybit is the world's second-largest crypto derivatives platform by trading volume, with over 60 million users. Founded in 2018, Bybit is reshaping the openness of the decentralized world, creating a simpler, more open, and equitable ecosystem for everyone. Bybit focuses on Web3, strategically partnering with leading blockchain protocols, providing robust infrastructure, and driving on-chain innovation. Bybit is renowned for its secure custody services, diverse markets, intuitive user experience, and advanced blockchain tools, bridging the gap between traditional finance and decentralized finance, enabling builders, creators, and enthusiasts to unleash the full potential of Web3.

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Mixin has launched USTD-margined perpetual contracts, bringing derivative trading into the chat scene.

The privacy-focused crypto wallet Mixin announced today the launch of its U-based perpetual contract (a derivative priced in USDT). Unlike traditional exchanges, Mixin has taken a new approach by "liberating" derivative trading from isolated matching engines and embedding it into the instant messaging environment.


Users can directly open positions within the app with leverage of up to 200x, while sharing positions, discussing strategies, and copy trading within private communities. Trading, social interaction, and asset management are integrated into the same interface.


Simplified Trading Experience: No KYC Required, Opening a Position in Five Steps


Based on its non-custodial architecture, Mixin has eliminated friction from the traditional onboarding process, allowing users to participate in perpetual contract trading without identity verification.


The trading process has been streamlined into five steps:

· Choose the trading asset

· Select long or short

· Input position size and leverage

· Confirm order details

· Confirm and open the position


The interface provides real-time visualization of price, position, and profit and loss (PnL), allowing users to complete trades without switching between multiple modules.


Social-Native Trading: Strategy and Execution Completed in the Same Context


Mixin has directly integrated social features into the derivative trading environment. Users can create private trading communities and interact around real-time positions:

· End-to-end encrypted private groups supporting up to 1024 members

· End-to-end encrypted voice communication

· One-click position sharing

· One-click trade copying


On the execution side, Mixin aggregates liquidity from multiple sources and accesses decentralized protocol and external market liquidity through a unified trading interface.


By combining social interaction with trade execution, Mixin enables users to collaborate, share, and execute trading strategies instantly within the same environment.


Referral Mechanism: Non-institutional users can receive up to 60% fee split


Mixin has also introduced a referral incentive system based on trading behavior:

· Users can join with an invite code

· Up to 60% of trading fees as referral rewards

· Incentive mechanism designed for long-term, sustainable earnings


This model aims to drive user-driven network expansion and organic growth.


Self-Custody Architecture and Built-in Privacy Mechanism


Mixin's derivative transactions are built on top of its existing self-custody wallet infrastructure, with core features including:


· Separation of transaction account and asset storage

· User full control over assets

· Platform does not custody user funds

· Built-in privacy mechanisms to reduce data exposure


The system aims to strike a balance between transaction efficiency, asset security, and privacy protection.


A New Path for On-Chain Derivatives


Against the background of perpetual contracts becoming a mainstream trading tool, Mixin is exploring a different development direction by lowering barriers, enhancing social and privacy attributes.


The platform does not only view transactions as execution actions but positions them as a networked activity: transactions have social attributes, strategies can be shared, and relationships between individuals also become part of the financial system.


Regulatory Background


Mixin's design is based on a user-initiated, user-controlled model. The platform neither custodies assets nor executes transactions on behalf of users.


This model aligns with a statement issued by the U.S. Securities and Exchange Commission (SEC) on April 13, 2026, titled "Staff Statement on Whether Partial User Interface Used in Preparing Cryptocurrency Securities Transactions May Require Broker-Dealer Registration."


The statement indicates that, under the premise where transactions are entirely initiated and controlled by users, non-custodial service providers that offer neutral interfaces may not need to register as broker-dealers or exchanges.


About Mixin


Mixin is a decentralized, self-custodial privacy wallet designed to provide secure and efficient digital asset management services.


Its core capabilities include:

· Aggregation: integrating multi-chain assets and routing between different transaction paths to simplify user operations

· High liquidity access: connecting to various liquidity sources, including decentralized protocols and external markets

· Decentralization: achieving full user control over assets without relying on custodial intermediaries

· Privacy protection: safeguarding assets and data through MPC, CryptoNote, and end-to-end encrypted communication


Mixin has been in operation for over 8 years, supporting over 40 blockchains and more than 10,000 assets, with a global user base exceeding 10 million and an on-chain self-custodied asset scale of over $1 billion.


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