BitMEX, a derivatives-focused cryptocurrency alternate, stated it has secured a custody associate to allow asset segregation and buying and selling with off-exchange property.
The corporate introduced Tuesday a partnership with Zodia Custody to permit merchants to entry derivatives whereas preserving collateral in segregated custody. The combination is instantly accessible through Interchange, Zodia Custody’s off-venue settlement resolution.
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 shopper funds in danger,” Lutz stated.
Buying and selling with out prefunding the alternate
Below the combination, institutional {and professional} BitMEX shoppers can commerce derivatives with out transferring property instantly onto the alternate. As an alternative, collateral stays in Zodia’s segregated vault and is mirrored for buying and selling execution.
This construction permits merchants to keep up 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).
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 supplier working 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 ingredient of conventional finance, changing into much more vital 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 every other asset — and may have entry to the identical companies as they do in conventional markets,” he added.
Extra reporting by Felix Ng.
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