Bybit Teams Up with Zodia Custody for Off-Venue Settlement Following $1.4 Billion Breach

Zodia Custody and Bybit have announced a partnership to
provide segregated custody and off-venue settlement for Bybit’s institutional
clients. Zodia Custody is backed by Standard Chartered, Northern Trust, SBI
Holdings, National Australia Bank, and Emirates NBD.

Bybit recently suffered a security breach that reportedly
led to the loss of more than $1.4 billion in liquid-staked Ether (ETH) and
MegaETH (mETH). The incident highlighted security risks associated with
on-exchange asset storage.

Off-Exchange Custody Gains Institutional Interest

Institutional investors require secure infrastructure and
regulatory compliance when engaging with digital assets. The risks of
centralised control and counterparty exposure have increased demand for
independent custody solutions.

“Institutional clients need more than speed—they need
to know their assets are held securely, off-exchange, and fully under their
control,” Julian Sawyer, CEO of Zodia Custody, commented.

Read more at FinanceMagnates.com: Bybit
Fully Covered $1.4B Ether Gap after the Hack; Handled $6.1B in Withdrawals.

Zodia Custody Improves Security for Institutions

Zodia Custody’s Interchange solution allows institutional
clients to trade on Bybit while keeping assets in independent custody. The
system ensures segregation, prevents co-mingling, and reduces exposure to
exchange-side risks. It also removes the need to pre-fund exchange accounts.

Zodia Custody is certified under SOC 1 Type I and II. It
serves financial institutions, government entities, hedge funds, and crypto
platforms in selected markets. The company provides custody infrastructure
designed to meet regulatory standards.

“Zodia Custody’s reputation as a trusted, highly
regulated custodian makes it the ideal partner to safeguard our clients’ assets
while enhancing capital efficiency. Together, we are setting new standards for
the institutional adoption of digital assets,” Shunyet Jan, Head of
Institutional and Derivatives at Bybit, added.

🚨 Breaking: Bybit teams up with Zodia Custody to boost security for institutional clients, ensuring safer trading with off-exchange asset storage. 🔒 pic.twitter.com/pj8fIZutVl

— Crypto Jessica (@CryptoJessXBT) April 3, 2025

Zodia Custody Expands Operations in Australia

National Australia Bank’s venture capital arm, NAB
Ventures, has invested in Zodia Custody, reflecting the growing adoption of
cryptocurrency solutions in traditional banking. Zodia Custody began operations in Australia in
late 2023.

The exact amount of NAB Ventures’ investment remains
undisclosed. Following this, Zodia Custody is working to onboard Australian
digital asset exchanges, many of which are moving assets to Zodia in
anticipation of stricter regulatory requirements expected by 2025.

This article was written by Tareq Sikder at www.financemagnates.com.