Institutional Crypto Custody Infrastructure Evolution: How SGB and Cactus Custody's Partnership is Reshaping Global Institutional Access to 24/7 Regulated Digital and Fiat Asset Management

The institutional crypto custody landscape in 2025 is undergoing a seismic shift, driven by the convergence of traditional banking infrastructure and digital asset innovation. At the forefront of this transformation is the partnership between Singapore Gulf Bank (SGB) and Matrixport's Cactus Custody, which has introduced a 24/7 regulated fiat custody solution for institutional clients. This collaboration not only addresses the urgent demand for operational efficiency but also redefines how institutions manage liquidity across fiat and crypto ecosystems. By leveraging SGB's real-time transfer system (SGB Net) and Cactus Custody's proprietary APIs, the partnership automates fund flows, reduces counterparty risks, and ensures compliance with evolving regulatory frameworksInstitutional Crypto Custody 2025: The Definitive Guide for…^[1].

The Strategic Imperative: Bridging Traditional and Digital Finance

Institutional investors have long grappled with the dichotomy between traditional asset management and the fragmented, often unregulated, crypto market. The SGB-Cactus Custody partnership bridges this gap by offering a unified infrastructure where fiat and crypto assets coexist under a single, compliant framework. Wendy Jiang, General Manager of Cactus Custody, emphasizes that this integration “strengthens fiat channels and custody capabilities,” enabling institutions to deploy capital with the same confidence as in traditional marketsInstitutional Crypto Custody 2025: The Definitive Guide for…^[1]. For example, SGB Net's real-time payments network allows cross-border transactions to settle in minutes rather than days, a critical advantage in markets where liquidity timing can determine profitabilitySingapore Gulf Bank and Cactus Custody To Roll Out 24/7 Fiat…^[3].

This synergy is not unique to SGB and Cactus Custody. Leading custodians like Anchorage Digital, BNY Mellon, and Coinbase Custody have similarly prioritized integration with legacy systems. BNY Mellon's Digital Asset Custody Platform, for instance, combines cold storage with multi-signature wallets to appeal to institutions seeking familiarity with traditional custody modelsSGB Teams With Matrixport to Give Institutions 24/7 Fiat and…^[4]. However, SGB's collaboration stands out for its focus on operational agility—a trait increasingly demanded by institutions navigating volatile crypto markets.

Regulatory Tailwinds and Market Dynamics

The partnership's success is underpinned by a regulatory environment that is rapidly evolving to accommodate crypto innovation. In the U.S., the Office of the Comptroller of the Currency (OCC) recently issued an interpretive letter (IL 1183) that permits banks to engage in crypto custody and node operations under robust risk management frameworksOur Take: financial services regulatory update – March 14, 2025^[5]. Similarly, the Senate Banking Committee's GENIUS Act seeks to stabilize the stablecoin market by mandating 1:1 U.S. dollar backing, a move that indirectly supports fiat custody solutions like SGB'sOur Take: financial services regulatory update – March 14, 2025^[5]. These developments signal a broader acceptance of crypto within traditional financial systems, reducing the stigma of digital assets as “risky” or “unregulated.”

Meanwhile, the SEC's “Project Crypto” initiative has clarified that certain staking and protocol activities do not fall under securities laws, further normalizing institutional participationSGB Teams With Matrixport to Give Institutions 24/7 Fiat and…^[4]. For SGB and Cactus Custody, this regulatory clarity is a catalyst. By aligning their services with these frameworks, they position themselves as a bridge between the innovation of crypto and the compliance expectations of institutional investors.

Comparative Analysis: SGB-Cactus Custody in the Global Context

To assess the partnership's impact, it is instructive to compare it with other market leaders. Anchorage Digital, chartered by the OCC, employs multi-party computation (MPC) and hardware-enforced isolation to secure assetsSingapore Gulf Bank and Cactus Custody To Roll Out 24/7 Fiat…^[3]. Coinbase Custody, meanwhile, offers military-grade cold storage and $320 million in insurance coverageInstitutional Crypto Custody 2025: The Definitive Guide for…^[1]. While these custodians excel in security and compliance, they often lack the real-time liquidity and seamless fiat integration that SGB-Cactus Custody provides.

For instance, institutions using Coinbase Custody must navigate separate processes for fiat and crypto settlements, which can delay capital deployment. SGB's integration of SGB Net with Cactus Custody's APIs eliminates this friction, enabling institutions to execute trades and settle funds in real timeInstitutional Crypto Custody 2025: The Definitive Guide for…^[1]. This is particularly valuable in emerging markets, where liquidity constraints and regulatory uncertainty have historically hindered adoptionOur Take: financial services regulatory update – March 14, 2025^[5].

The Road Ahead: Challenges and Opportunities

Despite its promise, the SGB-Cactus Custody model faces challenges. Cybersecurity remains a persistent threat, with institutional custodians reporting a 15% increase in targeted attacks in 2025Institutional Crypto Custody 2025: The Definitive Guide for…^[1]. Additionally, regulatory divergence across jurisdictions could complicate cross-border operations. However, the partnership's emphasis on open-API capabilities and regulatory alignment positions it to adapt to these challenges. Jireh Chua, SGB's Chief Development Officer, notes that the bank's commitment to “robust and compliant banking services” ensures scalability as markets evolveInstitutional Crypto Custody 2025: The Definitive Guide for…^[1].

For investors, the partnership represents a strategic bet on the future of asset management. As the global custody market is projected to exceed $3.28 billion in 2025Institutional Crypto Custody 2025: The Definitive Guide for…^[1], institutions that adopt 24/7 regulated solutions like SGB-Cactus Custody's will likely gain a competitive edge in liquidity, compliance, and operational efficiency.

Conclusion

The SGB-Cactus Custody partnership is more than a technical integration—it is a paradigm shift in how institutions approach digital and fiat asset management. By harmonizing real-time banking infrastructure with crypto custody, it addresses the core pain points of liquidity, compliance, and security. In a market where regulatory clarity and technological innovation are converging, this collaboration sets a new benchmark for institutional-grade custody solutions. As the industry moves toward a unified financial ecosystem, SGB and Cactus Custody's model may well become a blueprint for the next generation of asset management infrastructure.