- Bybit has collaborated with Zodia Custody to enhance asset security for institutional clients
- The partnership follows a $1.5 billion hack attributed to North Korean hackers
- Zodia’s custody solutions aim to provide segregated asset storage and off-exchange settlement
Bybit has announced a strategic partnership with Zodia Custody following the record-breaking theft it suffered in February. This collaboration aims to restore investor confidence by integrating Zodia’s secure custody solutions into Bybit’s trading platform, offering institutional clients enhanced asset protection. The linkup will allow institutional clients to trade on the platform while their assets remain with Zodia, although retail customers will not get such protections.
Bybit Addresses Security Concerns Post-Hack
The February 2025 Bybit breach, identified as the largest cryptocurrency exchange hack to date, involved the theft of around 400,000 Ethereum tokens worth over $1.5 billion. The hackers exploited vulnerabilities in Bybit’s multi-signature wallet system, facilitated by compromised infrastructure at Safe, a third-party provider. The U.S. Federal Bureau of Investigation attributed the attack to North Korean cyber actors the Lazarus Group.
In the aftermath, Bybit secured emergency funding to replenish its reserves and has been actively seeking measures to strengthen its security framework. The partnership with Zodia Custody represents a significant step in this direction, aiming to provide institutional clients with a more secure trading environment.
Implementing Robust Custody Solutions
Zodia Custody, backed by Standard Chartered, offers institutional-grade custody services that include segregated asset storage and off-exchange settlement. In a press release, Julian Sawyer, CEO of Zodia Custody, emphasized the importance of this collaboration:
As leading players in the industry, Zodia Custody and Bybit have a shared responsibility to provide tailor-made solutions to increase security and protect capital for the institutions that use our services.
Sawyer added that the deal allowed institutional users to “access trading liquidity without compromising on custody standards, counterparty risk, or capital efficiency.” Bybit’s proactive approach in partnering with Zodia Custody reflects a commitment to addressing the concerns raised by the hack and rebuilding trust among its user base, although retail users will want reassurances that their funds are just as safe.
