The digital asset market is maturing fast, yet many institutions remain cautious. Security, compliance, and operational efficiency continue to be the main hurdles holding them back. To address these challenges, custodians and exchanges are joining forces – building the infrastructure needed to bring institutions into Web3 with confidence.
In our recent AMA, we explored one of the most impactful innovations reshaping institutional access: Cactus Oasis, an off-exchange settlement (OES) solution. The discussion featured Anson Chan, APAC Head of Sales & Partnerships at Cactus Custody, and Alicia Li, Bybit B2B Manager, who shared how partnerships between custodians and exchanges could help facilitate the next wave of institutional adoption.
Custody: The Institutional Gatekeeper
Anson highlighted that regulated custodians like Cactus Custody are the foundation of institutional participation — ensuring security, capital efficiency, and compliance.
Alicia added that custody is not just about safekeeping — it can also play a role in enabling access. With a trusted custodian, traditional financial institutions can confidently explore tokenized Real-World Assets (RWAs) and other digital opportunities.
From Safekeeping to One-Stop Platform
Custodians are no longer just vaults — they are evolving into comprehensive service hubs, offering trading, lending, staking, DeFi access, and more.
This evolution is demand-driven. As Alicia noted, institutions want security frameworks and transparent reporting without sacrificing market access. Bybit’s deep liquidity and fast execution, integrated with Cactus Custody safeguards, can support institutions to capture opportunities with enhanced security and efficiency.
Custodians and Exchanges Co-Building
Do custody platforms and exchanges compete when services overlap? Not really.
Anson emphasized that custodians and exchanges play complementary roles. Custodians focus on security and compliance, while exchanges provide liquidity and execution.
Alicia highlighted that collaboration expanded the range of use cases institutions can pursue.
Off-Exchange Settlement: Building the Bridge of Trust
The centerpiece of the AMA was Cactus Oasis, now integrated with Bybit.
Through account segregation, cold/warm wallet infrastructure, multisignature protection, and tiered approvals, client assets remain secure under custody until execution. Post-trade settlements are handled jointly by Cactus Custody and Bybit. The benefits are clear — enhanced trust, stronger risk management and greater agility in operations.
To mark the launch, Bybit and Cactus Custody are introducing exclusive incentives for Cactus Oasis clients:
- Waived custody setup fees with Cactus Custody.
- Up to 80% discount on options trading fees on Bybit.
- Bybit offers 1:2 asset matching on Private Wealth Management (PWM) products for qualified clients.
Closing Thoughts
As Anson and Alicia concluded, innovation and collaboration are the engines of institutional Web3 adoption. Custodians and exchanges working hand in hand shall create a safer, smarter, and more inviting pathway for institutions and individuals to step into Web3.
* The full recording of the AMA is available in Chinese.