Zodia Custody has launched a new service to help protect its clients from exchange insolvency.
According to the company, its new service, Interchange, will provide an alternative to the pre-funding and margin models of exchanges. The service is set to allow users to keep their assets with Zodia Custody while mirroring holdings in exchanges, thereby protecting clients’ digital assets in the event that an exchange becomes insolvent.
Zodia Custody’s Interchange service is currently live and seeks to provide transparency and control to exchanges without handing over ownership of underlying assets. The technology provides instant access to exchange trading balances and automates post-trade settlement. Zodia Custody’s sister company, Zodia Markets, will also leverage this new service.
The launch of this new service comes a month after investors and exchange users lost billions of dollars in the collapse of FTX. The downfall of FTX has had a domino effect on the crypto ecosystem, with other companies within the space being impacted. One of the largest crypto lenders in the industry, BlockFi, filed for bankruptcy due to its exposure to FTX.
