BitMEX, a derivatives-focused crypto exchange, announced a partnership with Zodia Custody to let traders segregate assets and trade derivatives without moving collateral onto the exchange. The integration uses Interchange, Zodia’s off-venue settlement solution, and is available immediately.
BitMEX CEO Stephan Lutz said the move reflects lessons from past market failures such as the FTX collapse and the $1.4 billion Bybit hack, which highlighted the dangers of unsegregated or exchange-held funds. “Cases like the FTX collapse and the Bybit hack are examples of how custody failures or security threats can put client funds at risk,” Lutz said.
Under the integration, institutional and professional BitMEX clients can access perpetual swaps and futures while keeping collateral in Zodia’s segregated vault. Collateral is mirrored for execution, allowing traders to retain control of assets while trading. The setup supports cross-collateral use of Bitcoin (BTC), Ether (ETH), Tether USDt (USDT) and USDC, aiming to improve capital efficiency by removing the need to move assets between custody and exchange accounts and reducing operational risks tied to pre-funding workflows.
Zodia Custody, launched in 2021 and backed by Standard Chartered, is a global institutional digital asset custody provider. The firm secured a Markets in Crypto-Assets Regulation (MiCA) authorization in Luxembourg in late 2025, enabling regulated services across the EU.
Lutz noted that custody has long been a core element of traditional finance and is increasingly critical in crypto after incidents like FTX and Bybit. “Custody is a core part of traditional finance markets, and recent cases like FTX and Bybit are clear examples of why it’s even more important in crypto,” he said. “As the industry matures, institutions are trading digital assets like any other asset — and should have access to the same services as they do in traditional markets.”
Additional reporting by Felix Ng.
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