KuCoin, one of the leading crypto trading platforms, announced a strategic partnership with Cactus Custody. With the new integration, KuCoin Institutional will offer more options for large-scale clients to securely store crypto.
KuCoin Institutional partnered with Cactus Custody to offer additional storage and security options to large-scale clients and institutions. KuCoin will integrate Cactus Oasis, an off-exchange settlement framework for settling custody deals with high-level security.
Institutions and eligible clients will be able to directly trade on KuCoin without pre-funding exchange wallets. The partnership will give access to a market carrying $7.76B in daily volumes, with significant liquidity and a reliable reputation.
KuCoin will offer secure asset storage with trading opportunities
The client assets will remain securely held in regulated and fully segregated wallets, and funds will only be moved upon order execution. Cactus Custody will offer secure multi-sig wallets, cold storage, and ISO-certified controls.
“Cactus Oasis, combines institutional-grade security with integrated operational efficiency. By launching on KuCoin, we continue to broaden institutional clients’ access to trading venues and further strengthen client trust,” said Wendy Jiang, general manager at Cactus Custody.
KuCoin claims it is rebuilding trust in crypto with its $2B Trust Project by integrating better security tools. Clients will have access to more flexible custodian solutions to match their risk profile and operational requirements. KuCoin announced its Trust Project during the latest Token2049 event in Dubai, with the goal of improving the transparency and reliability of crypto tools.
KuCoin plans to offer links to the Web3 economy, while retaining secure institutional-grade custody.
KuCoin will settle trades off the market
Cactus Custody will offer the opportunity to its large clients to perform trades, which will be securely stated later. Cactus Oasis will settle trades and balances every four hours, with KuCoin handling the transfers.
Traders will use Cactus Custody, which is fully transparent and regulated. The funds are kept in cold storage, not part of the KuCoin hot wallets. This can decrease counterparty risk in the rare case of an exchange hack, and the funds are not pooled together with other deposits.
Institutional customers will also have their funds available for other exchanges beyond KuCoin. At the same time, they will be able to set up orders without pre-funding their exchange wallet.
Recently, KuCoin and other South Korean exchanges saw an outflow of users. The integration of Cactus Oasis can compensate for the lowered retail trading volume and interest from small-scale investors.
Cactus Custody also moves beyond centralized markets. The service has full regulatory credentials and is available for storage, DeFi access, as well as OTC and off-exchange settlement. The custodian serves 300 institutions worldwide, securing billions in value.
Custodian services have become more popular, as prominent institutions aim to disguise their crypto addresses to avoid attacks.
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