- Bybit lost $1.45B in a February 2025 hack, prompting stronger institutional safeguards.
- Zodia Custody ensures full asset segregation, backed by Standard Chartered and SBI.
- New custody deal removes need to pre-fund accounts, reducing exchange-related risk.
Cryptocurrency exchange Bybit has named Zodia Custody as its new partner to strengthen security and custodial options for institutions. The collaboration would help enhance the security of the assets since the February 2025 cyber heist, which cost Bybit $1.45 billion worth of digital assets.
Strengthening Custodial Security for Institutional Clients
By partnering with Zodiac Custody, Bybit provides independent custody models to serve its institutional clients. Bybit allows institutional clients to trade their transactions through secure Zodia Custody accounts for asset storage. The independent fund segregation system creates two discrete vaults, which protect assets from co-mingling and reduce exchange-side risks.
Established in 2020, Zodia Custody receives financial backing from major institutions such as Standard Chartered Bank, SBI Holdings, and Northern Trust. It targets institutional investors by providing security measures and regulatory compliance through a specialized service design. With its solution, Zodia Custody enables institutional clients to eliminate the requirement of funding their exchange accounts in advance, thus reducing costs and reducing potential risks from keeping funds directly on the exchange.
A Response to Bybit’s Major Security Breach
This cooperation emerged shortly after Bybit encountered a security breach earlier this year. In February 2025, Bybit had its system vulnerabilities exploited by North Korean hackers commonly known as the Lazarus Group, who stole almost $1.5 billion worth of cryptocurrency. One of the largest in crypto history to date, this attack raised fears of security for digital assets on exchanges.
Bybit CEO Ben Zhou explained that about 20% of stolen funds remained untraceable because hackers utilized mixing services to hide their trail. This breach highlighted the need for strong security procedures as a warning to institutional investors, who are most likely to be attacked. Further, Bybit has worked hard to ensure that it has amplified its security in its system, which is one of the critical developments that entailed the partnership with Zodiac Custody.
The cooperation between Zodia Custody and Bybit creates a new standard for institutional cryptocurrency trading services. The partner agreement provides separate storage solutions and off-market payment platforms to overcome key security and capital effectiveness problems that institutional investors face. The regulatory-grade infrastructure at Zodia Custody provides secure trading solutions through SOC-certified systems, which allows institutions to operate in a fully compliant and safe environment.
