Through Interchange, Zodia Custody and Bitfinex offer a truly bank-grade approach to off-exchange settlement to better protect institutional investors
The move is part of a wider commitment from both firms to evolve the digital asset ecosystem infrastructure, with a focus on greater security and compliance.
Zodia Custody’s market-leading product, Interchange, provides independent and effective safeguarding of digital assets for institutional clients trading on Bitfinex, while also reducing counterparty risk exposure.
The Interchange offering from Zodia Custody and Bitfinex has been designed with ease of use in mind, achieved through fully end-to-end processes and API integration. The solution provides a very low-touch operational process, automating the entire set of activities associated with digital asset custody — from asset mirroring on trading venues to settlement posting and execution. This process has been designed on a rule-based system that is completely standardised to ensure settlement is time-bound while keeping operational risk to a minimum for all participants. This is achieved by placing particular emphasis on limiting the number of on-chain settlement movements, creating significant cost savings for participants.
The collaboration between Bitfinex comes in response to increased institutional demand for a greater separation of exchange execution from custody, clearing, and settlement functions. As investors look to reduce risk while also requiring more robust security for their assets, the partnership is well-positioned to serve those needs.
“We believe in fostering a collaborative environment to drive innovation and best practice in the digital asset sector,” said Paolo Ardoino, CTO of Bitfinex. “We are committed to shaping the future of digital market infrastructure and enabling institutional investors 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.”
Zodia Custody will leverage its heritage in being backed by three global banks for the partnership — providing the collaboration with a truly rigorous, ‘bank-grade’ approach to custody.
“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,” said Julian Sawyer, CEO of Zodia Custody. “For investors in the digital asset space today, this isn’t a ‘nice to have’ but an absolute requirement. This collaboration not only underscores our commitment to delivering secure and compliant solutions, but also highlights the maturation of the digital market infrastructure.”