BitMEX has partnered with Zodia Custody to enhance its trading capabilities by allowing clients to retain control over their collateral while accessing derivatives. This integration offers institutional and professional users the opportunity to trade without needing to transfer assets directly onto the exchange, as collateral is stored in Zodia’s segregated vault.
Immediate access to this feature is available through Interchange, Zodia's off-venue settlement solution. This system supports cross-collateral usage of various cryptocurrencies, including Bitcoin (BTC), Ether (ETH), Tether USDt (USDT), and USDC. By eliminating the need for asset movement between custody and exchange accounts, the new setup aims to enhance capital efficiency and mitigate operational risks associated with pre-funding.
CEO Stephan Lutz emphasized that the partnership reflects lessons learned from significant market failures, such as the FTX collapse and the $1.4 billion Bybit hack, which highlighted the vulnerabilities of unsegregated funds. As the cryptocurrency sector evolves, Lutz noted the increasing importance of custody solutions, likening it to traditional finance where safeguarding assets is crucial.