BitMEX Enables Off-Exchange Trading Via Zodia Custody

BitMEX, a derivatives-focused cryptocurrency exchange, said it has secured a custody partner to enable asset segregation and trading with off-exchange assets.

The company announced Tuesday a partnership with Zodia Custody to allow traders to access derivatives while keeping collateral in segregated custody. The integration is immediately accessible via Interchange, Zodia Custody’s off-venue settlement solution.

BitMEX CEO Stephan Lutz told Cointelegraph the move reflects lessons from past market failures, including the FTX collapse and the $1.4 billion Bybit hack, which exposed risks tied to unsegregated or compromised exchange-held funds.

“Cases like the FTX collapse and the Bybit hack are examples of how custody failures or security threats can put client funds at risk,” Lutz said.

Trading without prefunding the exchange

Under the integration, institutional and professional BitMEX clients can trade derivatives without transferring assets directly onto the exchange. Instead, collateral remains in Zodia’s segregated vault and is mirrored for trading execution.

This structure allows traders to maintain control of assets while accessing BitMEX’s derivatives, including perpetual swaps and futures. It also supports cross-collateral usage of Bitcoin (BTC), Ether (ETH), Tether USDt (USDT) and USDC (USDC).

This setup is designed to improve capital efficiency for traders by removing the need to move assets between custody and exchange accounts. It also reduces operational risk tied to pre-funding workflows, which are common in traditional crypto trading models.

Custody is a core part of traditional finance markets

Zodia Custody, which launched in 2021 and is backed by Standard Chartered, is an institutional digital asset custody provider operating globally. The platform secured a Markets in Crypto-Assets Regulation (MiCA) authorization in Luxembourg in late 2025, enabling regulated services across the European Union.

BitMEX CEO noted that custody has long been a core element of traditional finance, becoming even more critical following collapses like FTX and security incidents like the Bybit hack.

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“Custody is a core part of traditional finance markets, and recent cases like FTX and Bybit are clear examples of why it’s even more important in crypto,” Lutz said.

“As the industry matures, institutions are trading digital assets like any other asset — and should have access to the same services as they do in traditional markets,” he added.

Additional reporting by Felix Ng.

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