In a bid to reinforce its security framework following a significant breach, cryptocurrency exchange Bybit has announced a strategic partnership with Zodia Custody. This collaboration comes in the wake of a devastating hack that occurred six weeks ago, resulting in the theft of a staggering $1.45 billion worth of digital assets.
Zodia Custody, supported by a consortium of prominent traditional finance (TradFi) players, including Standard Chartered, provides innovative solutions such as segregated custody and off-venue settlement. This partnership allows Bybit’s users to conduct trades while keeping their assets securely housed within Zodia’s custody, significantly mitigating on-exchange risks and preventing the co-mingling of funds.
The February attack on Bybit was unprecedented, marking it as the largest theft in terms of dollar value from a cryptocurrency exchange to date. Such incidents cast a long shadow over the potential for institutional adoption of digital assets, underscoring the necessity for robust custody services that meet the rigorous standards set by traditional financial institutions.
Julian Sawyer, CEO of Zodia Custody, emphasized this vision by stating, “custody and settlement built for institutions, not retrofitted for crypto,” highlighting the tailored approach Zodia takes to address the unique needs of institutional investors.
As the landscape of digital assets continues to evolve, the demand for secure, institutional-grade custody solutions will inevitably grow. Bybit’s alliance with Zodia Custody marks a significant step towards rebuilding trust and attracting a more mainstream audience to the cryptocurrency space.
