The crypto exchange Bitfinex has joined forces with Zodia Custody, a major digital asset custodian backed by financial giants Standard Chartered, SBI Holdings, and Northern Trust.
This strategic integration is set to transform the landscape for institutional clients, improving security and compliance and opening up new trading opportunities in the digital asset sector.
Summary
The crypto collaboration between Zodia Custody and the Bitfinex exchange
The digital asset landscape is constantly evolving, and as a result, the need for robust security, compliance and innovative solutions is becoming increasingly critical.
In a significant development, Bitfinex, a cutting-edge digital asset trading platform, has unveiled a strategic integration with Zodia Custody, a major digital asset custodian backed by financial giants Standard Chartered, SBI Holdings and Northern Trust.Â
This integration is set to reshape the way institutional clients engage with cryptocurrencies, emphasizing security and compliance as cornerstones of their partnership.
Seamless trading with enhanced security
At the heart of this partnership is an innovative feature that allows Zodia Custody clients to trade seamlessly on Bitfinex while their digital assets remain securely stored within Zodia Custody’s Interchange, an off-exchange settlement solution.
This innovative approach offers clients the ability to mirror their custodial assets on Bitfinex, giving them the freedom to trade while maintaining the integrity of their custodial assets.
The process is initiated when a Zodia Custody client expresses a desire to engage in trading activities.Â
Zodia Custody, with its commitment to security and compliance, blocks designated assets and promptly notifies Bitfinex.
Following a rigorous approval process, Bitfinex mirrors these assets to the client’s Bitfinex account.
This complex synchronization allows the client to execute transactions with ease, while their assets remain secure within Interchange.
To ensure transparency and security, periodic settlements are made, during which net trading activity is securely settled on-chain between Zodia Custody and Bitfinex.
This meticulous settlement process testifies to the commitment to security and innovation of this collaboration.
Prioritizing compliance and crypto market structure: the goals of the Bitfinex exchange collaboration
One of the main benefits of this integration is the clear separation of trading activities from custody operations.
This demarcation improves security measures, strengthens market structure, and contributes to the stability and long-term sustainability of the cryptocurrency ecosystem.
Paolo Ardoino, Chief Technology Officer (CTO) of Bitfinex, expressed the importance of promoting collaboration in the digital asset sector, stating:
“We believe in fostering a collaborative environment to drive innovation and best practices in digital assets… The collaboration with Zodia Custody is a significant part of this strategy, and together we can seek to enable even more institutions to enter or further participate in digital asset.”
Julian Sawyer, representative of Zodia Custody, emphasized the importance of their approach, stating:
“Interchange was designed from the ground up to provide a better, more robust approach to custody when trading across exchanges-this is custody, no compromise.”
Sawyer emphasized the fact that for investors in today’s digital asset landscape, secure custody solutions are not only desirable but are, in fact, an absolute necessity. This partnership underscores Zodia Custody’s ongoing commitment to providing secure and compliant solutions, marking a significant milestone in the maturation of the digital market infrastructure.
Compliance-oriented approach in the crypto space
The cryptocurrency industry is subject to stringent regulations that require adherence to compliance controls and safeguarding clients’ interests.
Bitfinex’s partnership with Zodia Custody underscores the exchange’s commitment to partnering with companies that share a compliance-oriented approach.
By aligning with a custodian that is not only reputable, but is also registered with the U.K. Financial Conduct Authority (FCA) as a digital asset business under strict regulations, Bitfinex reaffirms its commitment to regulatory compliance.
In a space that often navigates uncharted waters, the integration of Bitfinex and Zodia Custody represents a beacon of reliability, security, and innovation.
This partnership paves the way for institutional clients to invest in digital assets with confidence, knowing that their investments are not only compliant with regulations, but are also bolstered by state-of-the-art security measures.
As the digital asset landscape continues to evolve, collaborations like this one signal a maturation of the industry and an ongoing commitment to security and success for institutional investors. For those interested in the future of digital assets, the integration between Bitfinex and Zodia Custody is a development worth following closely.
Zodia Custody in detail
Zodia Custody is the leading institution-oriented digital asset custodian, backed by financial heavyweights such as Standard Chartered, Northern Trust, and SBI Holdings.
It enables institutional investors worldwide to tap the full potential of the future of digital assets in a simple, secure and uncompromising way.
With state-of-the-art technology, governance, compliance and custody solutions, Zodia Custody meets the complex needs of institutional investors.
Zodia Custody adheres to regulatory standards set by the Fifth Anti-Money Laundering Directive (5AMLD) and aligns with Standard Chartered’s AML, FCC, and KYC standards.
It also complies with the FATF Travel Rule. Zodia Custody Limited is registered with the UK Financial Conduct Authority (FCA) as a crypto asset business under the Money Laundering, Terrorist Financing, and Transfer of Funds Regulations 2017.
Zodia Custody (Ireland) Limited is registered with the Central Bank of Ireland as a Virtual Asset Service Provider under the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 (as amended).
Established in Ireland in August 2021, Zodia Custody Limited is registered with the CSSF in Luxembourg as a Virtual Asset Service Provider under Article 7-1 (2) of the Law of November 12, 2004 on Combating Money Laundering and Terrorist Financing, as amended.
