Crypto exchange Bitfinex is partnering with digital asset custodian Zodia Custody.

What Happened: The agreement will allow Zodia's clientele to execute trades on Bitfinex while ensuring their assets are maintained via Interchange, an off-exchange settlement solution.

Clients who hold accounts with both entities can mirror their custody assets on Bitfinex for trading purposes.

The process involves Zodia Custody locking the specified assets and notifying Bitfinex. After approval, Bitfinex will reflect these assets in the client's account, allowing them to trade while the assets remain in custody via Interchange.

Periodic settlements will then reconcile the net trading activity securely on-chain between the two entities.

This announcement comes just ahead of Benzinga's Future of Digital Assets conference on Nov. 14, where such integrations and the evolving landscape of digital assets are expected to be a focal point of discussions.

Why It Matters: Zodia Custody, recognized by the UK's Financial Conduct Authority as a digital asset business, is the latest in a series of collaborations Bitfinex has undertaken with prominent custodians.

Paolo Ardoino, CTO of Bitfinex, told Benzinga that by integrating Zodia Custody, the exchange is able to provide added comfort that clients' assets remain secure, while they take advantage of market movements or deploy investment strategies.

"Our collaboration with Zodia Custody is particularly important for institutions who require an option to use third-party custody while desiring the ability to trade safely," he said.

Julian Sawyer of Zodia Custody emphasized the importance of this collaboration.

"This isn’t a ‘nice to have’ but an absolute requirement," she said. "This collaboration not only underscores our commitment to delivering secure and compliant solutions but also highlights the maturation of the digital market infrastructure.”

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