BitMEX has partnered with Zodia Custody to enable off-exchange collateral trading, allowing users to keep assets in segregated custody while accessing derivatives markets.
Announced Tuesday, the integration lets traders use Zodia’s Interchange platform—its off-venue settlement solution—to trade without moving funds onto the exchange. Instead, collateral remains securely held in Zodia’s custody while being mirrored for execution on BitMEX.
BitMEX CEO Stephan Lutz said the move reflects lessons from past industry failures, including the collapse of FTX and the $1.4 billion hack of Bybit, both of which highlighted risks tied to centralized custody.
Trading without prefunding the exchange
Under the new setup, institutional and professional clients can trade derivatives without depositing assets directly onto BitMEX. Collateral is held in segregated vaults at Zodia Custody, giving traders greater control and reducing counterparty risk.
The system supports cross-collateralization using major assets including Bitcoin, Ether, Tether and USD Coin, while still providing access to BitMEX’s derivatives products such as perpetual swaps and futures.
The setup is designed to improve capital efficiency by eliminating the need to move assets between custody and exchange accounts, while also reducing operational risks associated with prefunding—common in traditional crypto trading models.
Custody becomes central as markets mature
Zodia Custody, launched in 2021 and backed by Standard Chartered, operates as a global institutional custody provider. The firm secured authorization under the EU’s Markets in Crypto-Assets Regulation in Luxembourg in late 2025, allowing it to offer regulated services across the bloc.
Stephan Lutz emphasized that custody has long been a foundational component of traditional finance, and recent events—such as the collapse of FTX and the hack of Bybit—have underscored its importance in crypto markets.
“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,” Lutz said, adding that as the industry evolves, institutions expect the same standards and services they rely on in traditional financial systems.
