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Zodia Custody

Bybit Teams Up with Zodia Custody to Offer Segregated Asset Storage for Institutional Clients

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  • 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.

Zodia’s Ripple-Powered Network Goes Global

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Standard Chartered’s crypto venture, Zodia Custody, teamed up with Ripple-owned custody specialist Metaco’s network to revolutionize the third generation of crypto custody. The collaboration aims to facilitate global sub-custody services for institutions worldwide, allowing seamless safekeeping and settlement of digital assets. Julian Sawyer, Zodia Custody’s CEO, emphasized the significance of this integration, envisioning a network where multiple custodians are interconnected. This interconnected system enables institutions to utilize sub-custodians in different regions, leveraging regulatory permissions and compliance in a seamless manner.

Ripple
Zodia's Ripple-Powered Network Goes Global 2

Established in 2020, Zodia Custody specializes in secure digital asset storage, primarily catering to institutional clients such as corporations and professional investors. The crypto venture, supported by Standard Chartered, recently expanded its services to Hong Kong, marking a significant milestone in its global presence. Zodia Custody’s expansion strategy involves forming strategic partnerships with esteemed institutions, including Standard Chartered, Northern Trust, and Japan’s SBI Holdings. This collaborative approach strengthens its position as a leading digital asset custodian.

On the other front, Ripple, a key player in enterprise blockchain and cryptocurrency solutions, has embarked on a strategic partnership with Uphold, a global Web3 financial platform. This collaboration aims to enhance Ripple’s crypto liquidity capabilities, reinforcing its cross-border payment infrastructure.

Ripple Spearhead Georgia’s CBDC Development

Ripple’s expertise in central bank digital currency [CBDC] development has been reaffirmed by the National Bank of Georgia, which selected Ripple Labs as its technology partner for the digital Lari (GEL) pilot project. This significant milestone positions Ripple at the forefront of CBDC innovation, with its platform slated to plan and execute the pilot program.

As both Zodia Custody and Ripple continue to make strides in the evolving crypto landscape, their strategic partnerships and innovative approaches contribute to the seamless integration of digital assets into the global financial ecosystem. The collaboration between Zodia Custody and Metaco’s network is a testament to the evolution of crypto custody into a globally interconnected system, fostering efficiency and compliance in the handling of digital assets for institutional clients across borders.

Standard Chartered’s Crypto Venture Expands To Hong Kong

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UK-based Zodia Custody, a digital asset custodian supported by Standard Chartered, has recently extended its services to Hong Kong, marking a significant expansion in the Asia-Pacific region, according to a CNBC report. Established in 2020, Zodia Custody specializes in providing secure investment opportunities in cryptocurrencies, primarily catering to institutional clients such as corporations and professional investors.

The decision to expand into Hong Kong was driven by the substantial demand for crypto assets, especially from institutional entities rather than individual retail customers, as per Julian Sawyer, Zodia’s CEO.

The Hong Kong government and the regulators see digital assets as the future and also want Hong Kong to be a hub. What we’re seeing is there are absolutely clients in all of those four markets who want to do things. We also see a lot of other clients and prospects outside those four jurisdictions that want to come in on the institutional side.

Hong Kong’s robust market appetite for cryptocurrencies, coupled with a progressive stance from the government and regulators, made it an ideal destination for Zodia’s expansion efforts. The Hong Kong authorities view digital assets as integral to the future financial landscape and are keen on establishing the city as a hub for such innovations.

Standard Chartered
Standard Chartered's Crypto Venture Expands To Hong Kong 4

Zodia Custody’s expansion into Hong Kong is part of its proactive approach in the Asia-Pacific region. In recent months, the company has extended its services to countries such as Japan, Singapore, and Australia. Importantly, Zodia Custody is not undertaking this expansion journey alone; it has formed strategic partnerships with well-established institutions like Standard Chartered, Northern Trust, and Japan’s SBI Holdings.

This expansion aligns with the backdrop of Hong Kong’s banking regulator urging major financial institutions, including HSBC and Standard Chartered, to consider embracing cryptocurrency exchanges as their clients. Although Hong Kong’s banks have not imposed outright bans on crypto clients, their cautious approach stems from concerns about potential legal consequences if these platforms are linked to money laundering or illicit activities.

Standard Chartered Under Regulatory Spotlight

Standard Chartered, being a significant player in Hong Kong, holds key positions as issuers of the city’s currency and within the Hong Kong Association of Banks lobby group. A spokesperson from Standard Chartered emphasized the bank’s ongoing dialogues with regulators on various topics.

Concurrently, Zodia Custody is engaging in discussions with both the Securities and Futures Commission [SFC] and the Hong Kong Monetary Authority to ensure regulatory compliance within the financial district. This signifies Zodia Custody’s dedication to operating within the bounds of regulations and maintaining a compliant business approach.