Bybit Launches Cactus Oasis Off-Exchange Settlement
Bybit has partnered with Cactus Custody to launch Cactus Oasis, an off-exchange settlement layer that keeps funds in SOC 2-audited cold storage until trade execution on Bybit. This off-exchange settlement model eliminates pre-funded exchange accounts and cuts counterparty risk for institutional traders.
The Cactus Oasis platform integrates hardware security modules (HSM), multi-party computation (MPC) and decentralized key recovery with a 3-of-5 threshold signature scheme across Ethereum, BNB Chain, Solana, Bitcoin and Avalanche. It offers on-chain and offline signing, dual-authorization workflows, real-time compliance checks, liquidity buffer accounts and cross-platform key management, alongside NFT custody.
Scheduled to go live on July 28, 2025, Cactus Oasis targets hedge funds and proprietary trading firms deterred by capital inefficiencies and exchange solvency concerns. Bybit’s off-exchange settlement with Cactus Custody also addresses regulatory best practices and aims to rebuild trust after the $1.5 billion Lazarus Group hack, streamlining institutional custody and execution processes.
Bullish
The launch of Cactus Oasis off-exchange settlement by Bybit and Cactus Custody is bullish for the cryptocurrency market. In the short term, improved security and reduced counterparty risk may attract new institutional liquidity and boost trading volumes on Bybit. Over the long term, robust MPC-based custody solutions and compliance-aligned workflows enhance market confidence, potentially driving wider institutional adoption and strengthening token demand across major chains. Historical trends show that infrastructure upgrades and risk mitigation measures often precede rising asset inflows, suggesting a positive price impact on affected tokens.