Bybit partners with Cactus Custody to improve institutional trading

Cryptocurrency exchange Bybit has formed a strategic partnership with Cactus Custody, a digital asset custodian under Matrixport Group, as per the information shared with Finbold on July 23.

🔔 @Bybit_Official partners with Cactus Custody to boost institutional trading efficiency and security. 🛡️ Secure institutional custody, no pre-funding, lower risk, full liquidity. Learn more https://t.co/5ORQArDns4 pic.twitter.com/3uU0zNklVH

— CactusCustody (@CactusCustody) July 23, 2025

The collaboration introduces an off-exchange settlement solution via Cactus Oasis, designed to enhance asset security and capital efficiency for institutional clients. The integration will go live on July 28, 2025.

The partnership allows institutional and professional clients to trade on Bybit without pre-funding exchange accounts. Clients deposit collateral with Cactus Custody, where assets are held in segregated, regulated custody and transferred to Bybit only at trade settlement, reducing counterparty risk while maintaining market liquidity access.

“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,” said Shunyet Jan, Head of Institutional and Derivatives at Bybit.

Custody infrastructure and compliance

Cactus Custody provides bank-grade security through a tiered hot and cold wallet system, combining hardware security module encryption with institutional-grade cold storage. The custodian holds SOC 1 Type 1 and SOC 2 Type 2 certifications from Deloitte and is licensed as a Hong Kong Trust Company and Trust or Company Service Provider under the Hong Kong Monetary Authority.

Cactus Oasis offers cross-platform custody through Buffer accounts, streamlining asset management across multiple exchanges. The platform provides flexible risk controls, including dual- and pre-authorization modes, customizable approval and settlement workflows, and compliance with KYC, KYB, and KYT requirements.

“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,” said Wendy Jiang, General Manager of Cactus Custody.

The partnership targets institutions in the Asia-Pacific region, where regulatory clarity, risk controls, and capital flexibility are considered essential for long-term market engagement.

Featured image via Shutterstock.