KuCoin and Cactus Custody Bridge Security-Efficiency Gap in Institutional Crypto Trading

KuCoin Institutional, the institutional arm of leading cryptocurrency exchange KuCoin, has partnered with Cactus Custody, a Matrixport Group subsidiary, to enhance institutional-grade digital asset security and market access, according to a Bitcoin World report. The collaboration integrates Cactus Oasis, Cactus Custody's Off-Exchange Settlement (OES) framework, which allows institutional clients to trade on KuCoin without pre-funding exchange wallets. This innovation ensures assets remain securely stored in regulated, segregated custody environments until order execution, leveraging multi-signature wallets, cold storage, and ISO-certified controls, as detailed in a PR Newswire release.

The partnership aims to address institutional demand for secure, efficient access to deep liquidity across spot, margin, options, and perpetual futures markets. By eliminating the need to transfer assets to exchange wallets, the integration mitigates risks associated with traditional trading workflows while optimizing capital efficiency. Wendy Jiang, General Manager at Cactus Custody, emphasized that the solution "combines institutional-grade security with integrated operational efficiency," broadening clients' access to trading venues and reinforcing trust.

The move builds on KuCoin's $2 Billion Trust Project, which has focused on expanding secure investment options for institutions. Tika Lum, Head of Global BD at KuCoin Institutional, described the partnership as a "pivotal step" in constructing a safer, more efficient digital asset ecosystem. The collaboration also aligns with KuCoin Institutional's mission to offer a full-spectrum ecosystem encompassing liquidity access, risk management, and global compliance.

Cactus Custody, managing multi-billion-dollar assets for over 300 institutions, operates under Hong Kong's TCSP regulatory framework. Its cold-hot layered security architecture and institutional-grade HSM encryption further bolster asset protection. The integration of Cactus Oasis on KuCoin Institutional is expected to drive institutional participation in digital markets, bridging traditional finance with the Web3 economy.

The partnership underscores growing demand for custodial solutions that balance security with operational agility. As institutional adoption of crypto accelerates, platforms like KuCoin Institutional and custodians such as Cactus Custody are positioning themselves to address evolving risk management and compliance needs.