Digital asset platform Zodia Custody and crypto-native investment firm Re7 Capital have announced a new partnership to bring institutional-grade custody infrastructure to on-chain strategies.
The collaboration will see Re7 Capital use Zodia Custody’s off-exchange settlement platform, the Interchange network, for custody services and off-exchange settlement.
The custody services will include support for transparent on-chain representations of investments in two Re7 Capital strategies – the BTC Yield and Market Neutral. Zodia Custody reveals in a press release that eligible clients will be able to hold these strategies within institutional-grade cold wallets to ensure that their capital is protected.
Additionally, Zodia Custody’s Interchange network will allow Re7 Capital to maintain assets within Zodia’s segregated cold storage environment while getting access to institutional liquidity solutions. With the network’s onboarded trading venues and lenders, Re7 can mirror its assets in its Zodia Custody wallet, removing the need to prefund and allowing assets to be allocated across venues instantly and securely – thus improving capital efficiency and reducing counterparty exposure.
According to Zodia Custody, the partnership “demonstrates the rise in institutional demand for on-chain fund structures and alternative investment vehicles that do not compromise on security or operational rigour”.
