Re7 Capital partners Zodia Custody on on-chain funds

Re7 Capital has partnered with Zodia Custody for custody and off-exchange settlement services, including on-chain representation of investments in selected Re7 funds.

The partnership will support transparent on-chain representation of investments in Re7 Capital's BTC Yield Strategy and Market Neutral Strategy, as well as custody of those fund interests. Eligible clients will be able to hold these interests in cold wallets managed through Zodia's infrastructure.

The agreement centres on two parts of Zodia's offering: custody for digital assets and fund interests, and use of its Interchange network for off-exchange settlement.

Re7 plans to use Interchange for its BTC Yield Strategy. Under this model, assets remain in segregated cold storage with Zodia while being mirrored across connected trading venues and lenders, avoiding the need to pre-fund accounts on those venues.

The structure reflects a broader effort in digital asset markets to address a long-standing concern among institutional investors: the need to move assets out of custody and onto exchanges to trade or access liquidity. By keeping assets in custody while enabling settlement across external venues, providers aim to reduce counterparty exposure without limiting access to liquidity.

On-chain funds

The partnership also highlights growing interest in on-chain fund structures, in which investment interests are represented transparently on blockchain-based systems while the underlying assets remain subject to conventional custody controls. In this case, the arrangement applies to selected Re7 strategies rather than the firm's full product range.

Re7 describes itself as a crypto-native investment firm. Zodia Custody is backed by shareholders and investors, including Standard Chartered, Northern Trust, SBI Holdings, National Australia Bank, and Emirates NBD.

On-chain representations of fund interests are drawing attention as investment managers and infrastructure providers test ways to combine blockchain-based recordkeeping with institutional custody arrangements. Supporters say this can improve transparency around ownership and transfers while preserving the security processes expected by larger investors.

For digital asset firms, off-exchange settlement has become a more prominent part of market infrastructure following a series of exchange failures and counterparty losses, prompting institutions to scrutinise how and where assets are held. The model seeks to separate trading access from asset custody, rather than concentrating both functions in a single venue.

Risk focus

In Re7's case, the combination of custody and access to venues is intended to support yield strategies that rely on the active deployment of capital while limiting operational and counterparty risks. Mirroring balances across onboarded venues allows assets to be allocated quickly without moving them out of custody in advance.

This can affect both capital management and risk controls. Managers can avoid tying up assets across multiple trading venues while reducing the exposure created when funds are transferred to exchanges or lenders before trades are executed.

"Institutional investors increasingly require infrastructure that allows them to access yield strategies and alternative investment vehicles while maintaining high standards of custody and risk management. Our partnership with Zodia Custody brings together secure asset protection and capital-efficient market access in a way that aligns with these evolving requirements," said Evgeny Gokhberg, Founder & Managing Partner, Re7 Capital.

Zodia said the same infrastructure addresses what it sees as a structural issue in institutional digital asset trading, where access to exchange liquidity has often required investors to move assets out of custodial environments.

"Interchange removes a structural barrier that has limited institutional participation in digital assets. When capital is deployed on an exchange, assets leave custody, and counterparty exposure is created. Interchange is designed to eliminate this. Through this partnership, Re7 can access deep liquidity across Interchange's network, deploying capital at scale without assets ever leaving custody," said Anoosh Arevshatian, Chief Product Officer, Zodia Custody.