The Emergence of 24/7 Regulated Fiat-Crypto Custody: A New Era for Institutional Investors

The financial landscape is undergoing a seismic shift as institutional investors increasingly seek to bridge the gap between traditional fiat systems and digital assets. At the forefront of this transformation is the partnership between Singapore Gulf Bank (SGB) and Matrixport's Cactus Custody, which has launched a 24/7 regulated fiat-crypto custody service. This collaboration not only addresses the operational inefficiencies of legacy systems but also redefines how institutions manage liquidity, compliance, and cross-border transactions in an era where digital assets are no longer a niche marketMatrixport’s Cactus Custody and Singapore Gulf Bank Partner to Support Regulated Fiat Custody^[1].

A Convergence of Banking and Blockchain

The SGB-Cactus Custody partnership leverages SGB's licensed banking infrastructure and real-time payments network (SGB Net) with Cactus Custody's digital asset expertise to create a unified platform for managing fiat and crypto assetsSingapore Gulf Bank and Cactus Custody To Roll Out 24/7 Fiat Custody^[2]. By automating fund flows and standardizing cross-border transactions, the service reduces settlement times from days to seconds while maintaining strict regulatory complianceSGB Teams With Matrixport to Give Institutions 24/7 Fiat and Crypto Custody Access^[3]. For institutional clients, this means instant access to liquidity—a critical advantage in markets where timing determines profitability.

According to a report by Cryptotimes, the integration of SGB Net with Cactus Custody's platform enables institutions to deploy capital more dynamically, aligning with the 24/7 nature of digital asset marketsInstitutions Gain 24/7 Fiat Access Through Singapore Gulf Bank Partnership^[4]. This is particularly significant for APAC and Middle Eastern markets, where demand for borderless, real-time financial solutions is surgingSingapore Gulf Bank and Matrixport Partner for Crypto Custody^[5]. Wendy Jiang, General Manager of Cactus Custody, emphasizes that the partnership “strengthens fiat channels and custody capabilities, enabling clients to manage multiple asset types under rigorous compliance controls”Cactus Custody & SGB Launch Regulated Fiat Custody^[6].

Operational Efficiency and Cost Reduction

The partnership's impact on operational efficiency is underscored by its ability to cut transaction costs and settlement times. A 2025 IMF study estimates that digital money can reduce cross-border transaction costs by up to 60%, a metric that directly aligns with the SGB-Cactus modelEstimating the Impact of Digital Money on Cross-Border Flows^[7]. By eliminating intermediaries and leveraging blockchain's inherent transparency, the service minimizes counterparty risk while accelerating fund transfers.

For example, institutions using the platform can now execute cross-border transactions in real time, bypassing the delays of traditional correspondent banking systems. Jireh Chua, SGB's Chief Development Officer, notes that the collaboration expands the bank's open-API infrastructure, allowing clients to “securely and instantly move fiat funds on a global scale”Singapore Gulf Bank and Cactus Custody To Roll Out 24/7 Fiat Custody^[8]. This is further supported by Cactus Custody's advanced cold storage solutions, which now support over 500 cryptocurrencies across 45 networks, including Ethereum and SolanaCactus Custody LinkedIn Newsletter | Key Updates^[9].

Competitive Positioning and Market Dynamics

While Cactus Custody faces competition from established players like Coinbase Custody (20.0% mindshare) and Hex Trust, its focus on institutional-grade compliance and interoperability positions it as a disruptive forceTop Cactus Custody Alternatives, Competitors^[10]. Unlike rivals, Cactus Custody's trust framework eliminates counterparty risk by segregating client assets and offering DeFi connectors for yield generationCompare Cactus Custody Escrow Service vs SEBA Custody Services^[11]. As of September 2025, Cactus Custody has captured 0.7% mindshare in the digital asset custody sector—a modest but growing presenceCactus Custody Escrow Service vs Coinbase Custody^[12].

The partnership's strategic alliances with firms like RockX and Fosun Wealth further enhance its appeal. These collaborations enable institutions to generate yield on staked assets without sacrificing security or liquidityCase Study: Enhancing Institutional Crypto Staking^[13]. In contrast, SEBA Custody Services, a former market leader, has seen its relevance wane amid shifting regulatory prioritiesCompare Cactus Custody Escrow Service vs SEBA Custody Services^[14].

A Future-Ready Financial Infrastructure

The SGB-Cactus Custody model is not merely a technological upgrade but a paradigm shift in how institutions approach capital mobility. By integrating real-time payments, blockchain security, and regulatory compliance, the partnership addresses three of the most pressing challenges in institutional finance: speed, trust, and scalabilitySingapore Gulf Bank and Cactus Custody Join Forces to Enhance Institutional Crypto Custody^[15].

As digital assets continue to account for a larger share of institutional portfolios, the demand for 24/7 custody solutions will only intensify. The SGB-Cactus model sets a precedent for how traditional banks and fintech innovators can collaborate to meet this demand—proving that the future of finance lies not in choosing between fiat and crypto, but in harmonizing themConvergence of Banking and Cryptocurrency Drives a New Era^[16].