Introducing off-venue settlement with Interchange
The digital asset landscape is evolving rapidly, and institutional investors are seeking secure and efficient ways to participate in this dynamic market. As institutional adoption of digital assets surges, the need for even more secure and efficient settlement solutions becomes paramount.
This is where Zodia Custody Interchange comes in: an off-venue settlement (OVS) solution designed to level up your institutional digital asset trading experience.
Built upon the foundation of efficiency, trust, and security, Interchange represents the next step in institutional digital asset trading. It builds upon traditional exchange-based settlement and existing off-exchange settlement (OES) offerings, empowering institutions with greater control and confidence throughout their digital asset transactions.
Level up: wider liquidity and flexibility with Interchange off-venue settlement
While off-venue settlement (OVS) shares some key principles with off-exchange settlement (OES), like being able to trade whilst assets are more securely held in cold storage, and reduced counterparty risk through secure custody, Interchange takes OVS a step further. It provides institutional investors with a broader network of trading venues, extending beyond traditional exchanges to encompass market makers and OTC desks.
This expanded ecosystem, facilitated by Interchange as the secure bridge, unlocks a compelling array of benefits for institutional investors seeking to level up their digital asset trading experience:
Tap into diverse liquidity pools: Access a wider range of counterparties, potentially leading to better trade execution and minimised slippage.
Optimise trading strategies: With more venue choices, offering broader trading access, enhancing your overall trading performance.
Increase flexibility: The wider network allows you to choose counterparties that best suit your specific needs and risk profile.
Streamlined OVS process with Interchange
Interchange simplifies the OVS process, allowing you to trade digital assets without pre-funding exchange accounts. Here’s a breakdown of the streamlined process:
Asset mirroring: Zodia Custody, acting as the custodian, mirrors the investor’s desired assets on a secure trading wallet held within their bank-grade custody infrastructure. This creates a virtual representation of the assets available for trading without physically moving them.
Trade initiation: An investor initiates a trade with a participating venue (exchange, OTC desk, or market maker) through their usual trading platform.
Trade execution: The trade is executed between the investor and the venue, with reference to the available mirrored assets.
Settlement: Upon a successful trade and receipt of a qualified settlement instruction, the transfer of the underlying assets is completed directly between the investor and the venue.
Interchange – the next step
Off-venue settlement with Interchange unlocks the next level of institutional digital asset trading. By prioritising flexibility and efficiency, off-venue-settlement empowers investors to trade with greater confidence and unlock the full potential of the asset class – simply, safely, and securely – without compromising the security of their digital assets.
Crypto Custody.
Without Compromise.
Zodia Custody - An official AYU Partner
We are delighted to introduce AYU Partner, Zodia Custody, the institution-first digital asset custodian.
Zodia Custody enables global institutions, corporations and professional investors to realise the full potential of the digital asset future - simply, safely and without compromise.