Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has formed a strategic partnership with Cactus Custody, an Asia-based digital asset custodian owned by the Matrixport Group.
The collaboration delivers a new off-exchange settlement solution via Cactus Oasis, with the service expected to launch on July 28, 2025.
This integration is specifically designed for institutional and professional clients, allowing them to trade on Bybit without having to pre-fund exchange accounts.
In order to lower counterparty risk and preserve access to market liquidity, clients place collateral into Cactus Custody, where assets are kept in completely segregated, regulated custody and only moved to Bybit at the point of trade settlement.
Shunyet Jan, head of institutional and derivatives at Bybit stated: “Bybit is committed to providing institutions with a secure and efficient trading environment. The integration of Cactus Oasis gives our clients more flexibility in managing liquidity without compromising asset protection.
Furthermore, the new approach ensures that institutional clients maintain complete control over their assets until the precise moment of deal execution. This enables institutions to achieve internal governance standards while optimising capital usage and risk management systems.
Cactus Custody’s security infrastructure comprises a layered wallet system that combines hot and cold storage. The platform integrates hardware security module (HSM) encryption with institutional-grade cold storage protocols. It also has Deloitte SOC 1 Type 1 and SOC 2 Type 2 certifications and operates under Hong Kong Monetary Authority licenses, ensuring that it meets stringent industry standards.
Furthermore, Cactus Oasis offers cross-platform custody through its own Buffer accounts. This structure speeds asset transfers across exchanges, allowing for better risk controls and settlement automation.
Dual- and pre-authorisation modes, customisable workflows, and role-based access are among the features that ensure strict compliance with the KYC (Know Your Customer), KYB (Know Your Business), and KYT (Know Your Transaction) protocol.
Wendy Jiang, General Manager of Cactus Custody shared: “This integration with Bybit addresses institutional demands for secure custody, risk reduction, and efficient post-trade settlement. It represents a meaningful step in advancing digital asset trading infrastructure and driving institutional adoption.”
The relationship is especially crucial for Asia-Pacific institutions, where legal certainty, capital flexibility, and solid risk management are essential for long-term institutional participation in digital assets.
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