Exchange of digital assets In keeping with the trend of cryptocurrency exchanges segregating custody from trading, Bitfinex is aiming to improve security for its institutional clients with Zodia Custody’s Interchange product.
Following the failure of FTX in November of last year, centralised cryptocurrency exchanges were confronted with a number of issues relating to their organisational structures, not the least of which was the division of business segments such as trading, financing, and custody, similar to how traditional financial organisations function.
Adoption of this commercial practise in the digital asset sector is probably going to be a key component of the regulatory monitoring that many crypto businesses are currently requesting.
London-based One of the companies selling products to help exchanges comply with such regulations is Zodia Custody, which is owned by global bank Standard Chartered (STAN). Clients of Zodia’s Interchange can maintain ownership of their assets on the platform while having a mirror of their holdings that can be traded on another exchange.
One of the most notorious hacks in the history of cryptocurrency occurred at Bitfinex in 2016, when 120,000 BTC (worth over $3 billion at current values) were taken.