Bitfinex has announced a strategic collaboration with Zodia Custody, enabling institutional clients to trade seamlessly on the exchange while their assets remain safeguarded through Zodia’s off-exchange settlement solution, Interchange.

According to a Sept. 28 statement shared with CryptoSlate, institutional clients who maintain accounts with Zodia Custody and Bitfinex can now seamlessly replicate their custodial assets on the crypto exchange for trading.

This integration offers Zodia Custody users the convenience of trading their assets without the need for actual transfers. The settlement resulting from these trading activities will occur periodically on the blockchain, facilitating efficient platform interaction.

Bitfinex stated that the partnership underscores its continued commitment to separating trading and custodial functions, a move aimed at enhancing security and fortifying the overall market structure.

Meanwhile, this strategic partnership with Zodia Custody, a UK-licensed entity, reflects Bitfinex’s ongoing efforts to collaborate with reputable custodians. It follows previous collaborations with esteemed custodial partners, including Koine in 2020 and Digivault in 2022.

Speaking on the partnership, Bitfinex CTO Paolo Ardoino said:

“We are committed to shaping the future of digital market infrastructure and enabling institutional customers to thrive in this space. Working with Zodia Custody is a significant part of that strategy, and together we can look to enable even more institutions to enter or further participate in digital assets.”

Zodia Custody’s Julian Sawyer described Interchange as an absolute necessity for digital assets investors. Sawyer added;

“Interchange has been designed from the ground up to provide a better, more robust, approach to custody when trading through exchanges — this is custody, without compromise… This isn’t a ‘nice to have’ but an absolute requirement.”

Earlier in the month, the Standard Chartered-backed custodial services provider Zodia Custody launched in Singapore, providing digital asset custody services for financial institutions in the Asian country.