Cryptocurrency storage provider Zodia Custody has rolled out a new service designed to protect clients’ digital assets in case a crypto exchange becomes insolvent.
The custodian, which is backed by Standard Chartered and Northern Trust, will allow clients to keep their assets on its platform, while their holdings are “mirrored” and available on an exchange for trading.
Concern over the safety of assets held by customers on centralized crypto exchanges has come to the fore in the past month with the collapse of exchange FTX in November.
Zodia’s service, named Interchange, “offers an alternative to the pre-funding and margin models on exchanges,” the firm said in an email Wednesday.
Interchange follows Zodia Custody’s identity toolset. That product, which was rolled out in October, is designed to help institutions prove ownership of crypto held in custodial wallets.