Cactus Custody Partners with Bybit to Enhance OTC Trading Experience

Bybit's integration with Cactus Custody introduces a revolutionary off-exchange settlement system, significantly reducing counterparty risk for institutional clients.

Summary

Bybit has partnered with Cactus Custody to integrate the Cactus Oasis off-exchange settlement system, which will launch on July 28, 2025. This system allows assets to remain under Cactus Custody’s control until trade execution, mitigating counterparty risks and enhancing liquidity management for institutional clients. The integration addresses security concerns in the wake of a recent $1.5 billion hack, providing a structural solution that separates custody and execution, aligning with regulatory expectations.

Terms & Concepts
  • OTC settlement system: Over-the-counter settlement systems facilitate direct trading between parties, often used by institutional investors to manage large transactions.
  • Cactus Oasis: Cactus Oasis is an OTC settlement system developed by Cactus Custody, designed to enhance trading efficiency and reduce counterparty risk.
  • counterparty risk: The risk that the other party in a transaction may default on their contractual obligations.