Crypto asset provider Zodia Custody has launched a new service to help protect its clients from exchange insolvency.
According to the firm, its new service, Interchange, will offer an alternative to exchanges’ pre-funding and margin models. The service will allow users to keep their assets in Zodia Custody while mirroring holdings on exchanges, thus protecting clients’ digital assets in the event of a platform’s insolvency.
Based in London, Zodia Custody is backed by Standard Chartered and Northern Trust financial institutions.
Introducing our new service: Zodia Interchange in collaboration with @zodiamarkets. You can now actively trade on multiple exchanges directly from your #custody wallet. Minimum risk & full asset #segregation guaranteedâ —ï¸#SecureTrading
Learn more: https://t.co/Y05hUeDVN2 pic.twitter.com/KlqAluR0LP— Zodia (@ZodiaCustody) December 7, 2022
Zodia Custody’s Interchange service is now operational and aims to offer transparency and control to exchanges without giving up ownership of the underlying assets. The technology provides instant access to exchange trading balances and automates post-trade settlement. Zodia Custody’s sister company, Zodia Markets will also take advantage of this new service.
Maxime de Guillebon, CEO of Zodia Custody, shared that the company’s principles “have always evolved around asset security, segregation between custody and trading, and effective counterparty risk management.”
The launch of this new service comes a month after investors and exchange users they lost billions of dollars with the bankruptcy of FTX. The fall of FTX has had a domino effect in the cryptocurrency ecosystem, which has affected other companies in the sector. One of the largest cryptocurrency lenders in the industry, BlockFi, filed for bankruptcy due to its exposure to FTX.
Another big name in the cryptocurrency space, Genesis Trading, it is also facing significant difficulties after the fall of FTX. The financial services provider has more than $170 million of assets locked up on FTX, making trading virtually impossible.
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