BitMEX Partners With Zodia Custody for Off-Exchange Derivatives Trading
Luisa Crawford Apr 21, 2026 17:37
BitMEX teams up with Zodia Custody to enable off-exchange crypto derivatives trading using segregated custody accounts, addressing post-FTX security concerns.
BitMEX has partnered with Zodia Custody to offer institutional clients the ability to trade crypto derivatives while holding collateral in segregated off-exchange custody accounts. The move aims to address security and trust concerns following high-profile industry failures like the FTX collapse and the $1.4 billion Bybit hack.
The integration, accessible via Zodia’s Interchange solution, allows BitMEX clients to maintain full control over their assets during trading. Under this structure, collateral remains in Zodia’s secure vaults while being mirrored for execution on BitMEX. This eliminates the need to transfer assets directly to the exchange, reducing operational risks and enhancing capital efficiency for traders.
Mitigating Risks in a Post-FTX World
BitMEX CEO Stephan Lutz emphasized that the collaboration reflects lessons learned from past market crises. "Cases like the FTX collapse and the Bybit hack highlight how custody failures and compromised exchange-held funds can jeopardize client assets," Lutz said in a statement.
By integrating Zodia Custody, BitMEX aims to provide a more secure alternative to traditional crypto trading models, where prefunding exchanges often exposes assets to counterparty risks. The service supports Bitcoin (BTC), Ether (ETH), Tether (USDT), and USD Coin (USDC) as collateral, with the option for cross-collateral usage across derivatives like perpetual swaps and futures.
Institutional-Grade Custody Meets Crypto
Zodia Custody, a London-based digital asset custody firm, was founded in 2020 as a joint venture between Standard Chartered’s SC Ventures and Northern Trust. Regulated by the UK’s Financial Conduct Authority (FCA) and other major European regulators, Zodia focuses on providing institutional-grade security for digital assets.
Over the years, Zodia has positioned itself as a leader in institutional crypto custody, offering services like secure storage, off-venue settlement via Interchange, and connections to other financial platforms through its Gateway product. The firm's recent approval under the European Union’s Markets in Crypto-Assets Regulation (MiCA) further underscores its commitment to regulatory compliance and operational transparency.
"Custody has always been a cornerstone of traditional finance, and it’s critical for the maturing crypto market," Lutz noted, adding that the partnership brings crypto trading closer to the operational standards of traditional asset markets.
What It Means for Institutional Traders
For professional traders, the ability to trade derivatives without prefunding exchange accounts offers significant advantages. Capital efficiency improves as traders avoid the delays and risks associated with moving funds between custody and exchange platforms. Additionally, Zodia’s segregated custody accounts provide an added layer of protection against potential exchange insolvencies or hacks.
This collaboration also aligns with a growing demand among institutional investors for solutions that combine robust security with liquidity access. As the crypto market matures, partnerships like this are likely to set the standard for how institutional players approach digital asset trading.
BitMEX and Zodia’s integration is live as of April 2026, offering immediate access for eligible institutional clients. With both firms emphasizing regulatory compliance and user protection, the partnership signals a step forward in aligning crypto trading practices with the expectations of traditional financial markets.
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