Bybit, which now holds the position of the world’s second-largest crypto exchange based on trading volume, is collaborating with Cactus Custody, a prominent Asian custodian under the Matrixport Group, to enhance the security and efficiency of large-scale cryptocurrency trading. The new off-exchange settlement service, known as Cactus Oasis, is scheduled to launch on July 28, 2025.
The core concept involves enabling institutional and professional traders to securely store their crypto assets with Cactus Custody, ensuring complete segregation and regulatory compliance. When a trade is executed on Bybit, the necessary collateral will be transferred from Cactus Custody to Bybit for settlement, and then returned to custody afterward. This arrangement aims to reduce counterparty risk and provide immediate access to Bybit’s liquidity, while minimizing the need to hold significant amounts of crypto assets directly on the exchange.
Shunyet Jan, Head of Institutional and Derivatives at Bybit, stated, “Bybit is dedicated to offering a secure and effective trading platform for institutions. Integrating Cactus Oasis empowers our clients with increased flexibility in liquidity management without compromising the safety of their assets.”
Boosting Institutional Liquidity and Security
Security is a paramount concern for Cactus Oasis. Cactus Custody employs a multi-layered approach, combining hardware-backed encryption for online wallets and deep-freeze cold storage for long-term asset holding. Demonstrating their commitment to security, Cactus Custody has obtained SOC 1 Type 1 and SOC 2 Type 2 certifications from Deloitte and is licensed as a Hong Kong Trust Company and a Trust or Company Service Provider under HKMA regulations, signifying a robust, institutional-grade security framework.
Cactus Oasis offers more than just secure storage. Its key feature, Buffer accounts, provides firms with a unified dashboard to manage collateral across various exchanges. Enhanced oversight is facilitated through options for dual approvals or pre-trade authorizations. Customization is another benefit, allowing for the adaptation of approval and settlement workflows to align with internal compliance policies, including role-based permissions and integrated KYC, KYB, and KYT checks.
Wendy Jiang, General Manager of Cactus Custody, commented, “This integration with Bybit addresses the institutional need for secure custody, risk mitigation, and streamlined post-trade settlement. It signifies a crucial advancement in digital asset trading infrastructure and supports increased institutional adoption.”
This partnership is particularly relevant for institutions in the Asia-Pacific region, where regulators are increasingly emphasizing stringent controls and transparency in digital assets. By combining Bybit’s strong liquidity and sophisticated trading tools with Cactus’s secure custody infrastructure, both companies seek to accelerate institutional adoption in a market eager for compliant and scalable solutions. The Bybit–Cactus Oasis collaboration represents a significant step toward building the robust, professional ecosystem that institutional investors expect and require as they increasingly engage with cryptocurrency.