KuCoin Institutional and Cactus Custody have announced a strategic partnership designed to give institutional investors safer, more flexible access to crypto markets. The collaboration centers on Cactus Custody’s Off-Exchange Settlement framework, Cactus Oasis, which is being integrated with KuCoin’s institutional trading stack to let eligible clients trade without the need to pre-fund exchange wallets, a move the companies say raises the bar for custody security, trading efficiency, and capital use.
Under the arrangement, client assets remain in a regulated, fully segregated custody environment with Cactus Custody until an order is executed on KuCoin. That custody layer includes institutional protections such as multi-signature wallets, cold storage and ISO-certified controls, while KuCoin Institutional provides access to deep liquidity across spot, margin, options and perpetual futures markets. The result, both firms argue, is a workflow that reduces operational friction and counterparty exposure while preserving rapid market access.
Wendy Jiang, General Manager at Cactus Custody, said: “At Cactus Custody, we are committed to advancing security standards and digital asset operations, working closely with industry partners to enhance client asset safety and seamless market access. Our latest offering – Cactus Oasis, combines institutional-grade security with integrated operational efficiency. By launching on KuCoin, we continue to broaden institutional clients’ access to trading venues and further strengthen client trust.”
“Our partnership with Cactus Custody represents a pivotal step in building a safer and more efficient digital asset ecosystem for institutions,” said Tika Lum, Head of Global BD at KuCoin Institutional. “The launch of KuCoin Institutional and our integration with Cactus reaffirm our commitment to providing institutions with the highest standards of liquidity, infrastructure, and security.”
Advancing Secure Market Access
For institutional clients, the practical advantages are straightforward: capital that would otherwise sit idle in exchange wallets can remain under qualified custody until needed for execution, improving capital efficiency and simplifying compliance and audit trails. The model mirrors similar integrations Cactus Custody has completed with other exchanges and venues, evidence of growing demand from institutions for custody-first settlement solutions that do not sacrifice liquidity access.
Cactus Custody, which operates under the Matrixport Group and holds a Hong Kong TCSP license, says it already serves more than 300 institutional clients and safeguards assets in the multi-billion dollar range. Its custody offering combines a cold-hot layered security architecture with institutional-grade HSM encryption, whitelisted controls and strict compliance processes, capabilities Cactus and KuCoin say are critical as institutional flows into digital assets grow and regulators press for clearer operational safeguards.
KuCoin Institutional, the exchange’s arm focused on professional investors, funds and enterprises, positions the partnership as part of its mission to offer a full-spectrum institutional ecosystem: advanced trading infrastructure, capital management tools and custody options designed to let institutions participate in the digital economy with confidence and transparency. For Cactus, the tie-up expands the reach of Cactus Oasis and cements its role as a custody provider willing to plug into major trading venues.
Market observers say arrangements that separate custody from execution while preserving fast access to liquidity could become a differentiator for exchanges courting large, compliance-sensitive clients. By combining a regulated custody layer with on-exchange market access, KuCoin and Cactus Custody are pushing a service model that aims to bridge traditional finance practices with the operational realities of Web3 trading, a convergence institutions have been seeking as they scale crypto allocations.
As institutional participation in crypto continues to evolve, partnerships like this one illustrate an industry trend toward modular infrastructure: institutions want to pick best-in-class custody, execution and capital management partners rather than lock into a single provider. For now, KuCoin Institutional and Cactus Custody say their integration will deliver immediate benefits to eligible clients looking for both security and liquidity, and that it marks the next step in bringing more traditional pools of capital into the digital asset ecosystem.
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