Fireblocks scales custody framework as Zerocap consolidates operations on Deribit

Zerocap, a regulated Australian market maker and liquidity provider, has dramatically scaled its derivatives trading operation by migrating collateral to Fireblocks’ Off Exchange custody solution. The move allowed Zerocap to grow its Deribit trading book from a value measured in the millions to one now sitting in the tens of millions. Here’s the thing about crypto derivatives trading: it has always carried an uncomfortable paradox. To trade on an exchange, you typically have to park your collateral on that exchange, which means trusting someone else with your assets while simultaneously trying to hedge risk. Fireblocks’ Off Exchange product essentially resolves that tension by letting assets stay within its custody perimeter while still being recognized as valid margin on Deribit. How the plumbing actually works The Off Exchange solution, which launched in late 2023 with Deribit as its first integrated exchange, uses on-chain MPC (multi-party computation) wallets to hold trading collateral. Assets remain under Fireblocks’ security architecture through what the company calls programmatic mirroring: the exchange can see the collateral is real and treat it as margin, but the funds nev...