Bitfinex Collaborates with Zodia Custody to Elevate Client Asset Security with Interchange Product
Bitfinex, a digital assets exchange, is taking steps to enhance security measures for its institutional clients by partnering with Zodia Custody and utilizing their Interchange product. This move follows a broader trend in the crypto exchange industry, where there's a separation between custody services and trading operations.
After the incident involving FTX's collapse in November of the previous year, centralized crypto exchanges have faced scrutiny regarding their operational structures, particularly in terms of segregating functions like trading, financing, and custody, aligning with the practices of traditional financial institutions.
The adoption of such a business model within the digital asset sphere is likely to become a significant aspect of the regulatory framework that many crypto companies are currently striving to adhere to.
Zodia Custody, headquartered in London and under the ownership of multinational bank Standard Chartered (STAN), is among the firms offering solutions that enable exchanges to meet these regulatory requirements. Zodia's Interchange allows clients to securely store their assets on its platform, while simultaneously making them available for trading on an exchange.
It's worth noting that Bitfinex experienced one of the most notorious hacks in the history of cryptocurrency back in 2016, resulting in the theft of 120,000 BTC, valued at over $3 billion in today's prices.
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