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Finance

Bitfinex to Enhance Clients' Assets Security Using Zodia Custody's Interchange Product

Zodia's Interchange allows clients to keep their assets on its platform, while their holdings are mirrored and available on an exchange for trading.

By Jamie Crawley
AccessTimeIconSep 28, 2023 at 12:00 p.m. UTC
(Pixabay)

(Pixabay)

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Digital assets exchange Bitfinex is looking to increase the security for its institutional clients with Zodia Custody's Interchange product, continuing the trend of crypto exchanges separating custody from trading.

Following the collapse of FTX last November, centralized cryptocurrency exchanges faced several questions regarding their organizational structures, not least among them the separation of business lines such as trading, financing and custody, akin to how traditional financial firms operate.

Adoption of this business practice in the digital asset industry is likely to be an important tenet of the regulatory oversight that many crypto firms are now seeking.

London-based Zodia Custody, which is owned by multinational bank Standard Chartered (STAN), is one of the firms offering products that would enable exchanges to comply with such rules. Zodia's Interchange allows clients to keep their assets on its platform, while their holdings are mirrored and available on an exchange for trading.

Bitfinex was subject to one of the most infamous hacks in the history of crypto, which saw 120,000 BTC (worth over $3 billion in today's prices) stolen in 2016.

Read More: Binance Is Supposedly Separate From Crypto Custodian Ceffu. The SEC Has Questions

Edited by Omkar Godbole.





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Jamie Crawley
Jamie Crawley

Jamie Crawley is a CoinDesk news reporter based in London.

Follow @JamieCrawleyCD on Twitter

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