Marathon Digital has selected Zodia Custody, backed by Standard Chartered, as a digital asset depository to protect its cryptocurrency holdings.
As stated in Monday’s announcement, Zodia Custody will offer secure institutional-level storage solutions for Marathon’s cryptocurrency holdings located outside the United States.
The need for secure and reliable storage of digital assets is driving crypto companies to seek out cryptocurrency custodians. These specialized institutions offer comprehensive solutions to secure assets against theft, loss or misuse.
To achieve this protection, cryptocurrency custodians employ advanced security measures. These safeguards include multi-signature wallets that require multiple approvals for each transaction. They also offer a cold storage facility that keeps most assets offline and out of reach of online hackers.
Zodia Custody joins Marathon’s list of trusted cryptocurrency depositories
Marathon is expanding its risk management strategy by selecting Zodia Custody as its fourth depositary. This partnership strengthens Marathon’s level of security, providing additional assurances such as secure cold storage, 24/7 availability and protection against depository insolvency.
“As Marathon’s fourth custodian, we provide greater diversification and risk management – exactly what the ecosystem needs,” – Julian Sawyer, CEO of Zodia Custody, said.
The company already provides its services to Anchorage Digital, Fidelity Digital and another undisclosed crypto company. The strategy ensures that the Bitcoin vault is spread across multiple depositories, providing greater security and risk management.
Zodia Custody’s incubators are two established financial institutions: Standard Chartered and Northern Trust. Combining its experience with the flexibility of a startup, Zodia Custody aims to be a leader in the digital asset custody industry. It offers secure portfolios for institutions to trade digital assets, as well as services to help clients earn rewards for their assets.
Marathon CEO warns of financial difficulties for smaller miners
Marathon Digital CEO Fred Thiel issued a warning last month. According to him, smaller Bitcoin miners will get into financial trouble after the recent halving. Thiel spoke to CNBC about the uneven playing field in the mining industry. Larger miners have managed to secure financing, while smaller miners are struggling to expand because they can’t get the financing they need.
“I think that after halving, the smaller miners will find themselves in a difficult financial situation, which will enable the larger miners to consolidate the industry,” he said.
