In a move that strengthens the infrastructure behind institutional crypto trading, Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has announced a strategic partnership with Cactus Custody, Asia’s leading licensed digital asset custodian under the Matrixport Group. Together, the two powerhouses are launching an off-exchange settlement solution through Cactus Oasis, aiming to provide institutional clients with greater security, capital efficiency, and control over their trading operations. The integration is set to go live on July 28, 2025.
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This partnership is a game-changer for institutions and professional traders. Instead of pre-funding exchange accounts, clients can now hold their assets securely with Cactus Custody and settle trades on Bybit only when needed. That means fewer assets sitting on the exchange, lower counterparty risk, and more flexibility when it comes to managing liquidity.
“Bybit is dedicated to creating a safe and efficient environment for institutional trading,” said Shunyet Jan, Head of Institutional and Derivatives at Bybit. “With Cactus Oasis, clients can keep control of their assets while enjoying seamless market access it’s the best of both worlds.”
At the core of this new model is Cactus Custody’s robust security framework. Assets are stored using a combination of tiered hot and cold wallets, HSM encryption, and institutional-grade cold storage. The custodian holds both SOC 1 Type 1 and SOC 2 Type 2 certifications from Deloitte and is regulated as a Hong Kong Trust Company and TCSP, ensuring the setup meets the highest standards of security and compliance.
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Cactus Oasis also brings tailored features specifically built for institutional needs. Using its Buffer accounts, clients can streamline asset management across multiple exchanges, all while maintaining clear controls. The platform offers flexible risk management tools, from dual-authorization workflows to detailed permissions and approval settings, and is fully aligned with KYC, KYB, and KYT requirements making it easy for institutions to meet their internal and regulatory compliance needs.
“Institutions are asking for more than just custody—they want smart, secure systems that integrate seamlessly into how they trade,” said Wendy Jiang, General Manager of Cactus Custody. “This collaboration with Bybit delivers exactly that. It’s about giving institutions the control, transparency, and efficiency they need to scale in the digital asset space.”
The partnership comes at a critical time, as more institutions across the Asia-Pacific region and beyond explore digital asset exposure. With evolving regulations and a growing emphasis on risk management, solutions like this are paving the way for sustainable, long-term institutional adoption.
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Both Bybit and Cactus Custody are aligned in their vision to support this growth by building transparent, compliant, and scalable infrastructure that empowers institutions to participate confidently in the digital economy.
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