Zodia Custody Introduces Service to Protect Against Crypto Exchange Insolvency
Cryptocurrency storage provider Zodia Custody has rolled out a new service designed to protect clients' digital assets from insolvency of crypto exchanges.
The custodian, backed by Standard Chartered and Northern Trust, will allow clients to keep their assets in Zodia's auspices, while their holdings are mirrored on exchanges.
Concern over the safety of assets held by customers on centralized crypto exchanges has come to the fore in the past month following the dramatic collapse of FTX in November.
The service, named Interchange, "offers an alternative to the pre-funding and margin models on exchanges," the firm said in an email Wednesday.
Interchange follows Zodia Custody's identity toolset, rolled out in October, which is designed to help institutions prove ownership of crypto held in custodial wallets.
Read more: Custodial vs. Non-Custodial Crypto Exchanges: What You Need to Know