BitMEX Enables Off-Exchange Trading Via Zodia Custody

BitMEX, a derivatives-focused cryptocurrency alternate, stated it has secured a custody accomplice to allow asset segregation and buying and selling with off-exchange property.

The corporate announced Tuesday a partnership with Zodia Custody to permit merchants to entry derivatives whereas retaining collateral in segregated custody. The combination is straight away accessible by way of Interchange, Zodia Custody’s off-venue settlement answer.

BitMEX CEO Stephan Lutz instructed Cointelegraph the transfer displays classes from previous market failures, together with the FTX collapse and the $1.4 billion Bybit hack, which uncovered dangers tied to unsegregated or compromised exchange-held funds.

“Instances just like the FTX collapse and the Bybit hack are examples of how custody failures or safety threats can put consumer funds in danger,” Lutz stated.

Trading with out prefunding the alternate

Below the combination, institutional {and professional} BitMEX shoppers can commerce derivatives with out transferring property immediately onto the alternate. As a substitute, collateral stays in Zodia’s segregated vault and is mirrored for buying and selling execution.

This construction permits merchants to take care of management of property whereas accessing BitMEX’s derivatives, together with perpetual swaps and futures. It additionally helps cross-collateral utilization of Bitcoin (BTC), Ether (ETH), Tether USDt (USDT) and USDC (USDC).

Supply: BitMEX

This setup is designed to enhance capital effectivity for merchants by eradicating the necessity to transfer property between custody and alternate accounts. It additionally reduces operational danger tied to pre-funding workflows, that are widespread in conventional crypto buying and selling fashions.

Custody is a core a part of conventional finance markets

Zodia Custody, which launched in 2021 and is backed by Normal Chartered, is an institutional digital asset custody provider operating globally. The platform secured a Markets in Crypto-Property Regulation (MiCA) authorization in Luxembourg in late 2025, enabling regulated companies throughout the European Union.

BitMEX CEO famous that custody has lengthy been a core aspect of conventional finance, turning into much more crucial following collapses like FTX and safety incidents just like the Bybit hack.

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“Custody is a core a part of conventional finance markets, and up to date circumstances like FTX and Bybit are clear examples of why it’s much more vital in crypto,” Lutz stated.

“Because the business matures, establishments are buying and selling digital property like another asset — and may have entry to the identical companies as they do in conventional markets,” he added.

Further reporting by Felix Ng.

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