Cactus Custody has introduced an innovative self-custody platform tailored for institutional clients, leveraging Multi-Party Computation (MPC) technology. This new offering allows organizations to maintain direct control over their digital assets while reducing reliance on centralized custodians.
The platform”s architecture enhances security by dividing private keys into multiple encrypted fragments, stored in a distributed manner. This design mitigates the risk associated with a single point of failure, ensuring that clients can retain operational authority over their holdings. Such a structure is particularly appealing to institutions that emphasize autonomy and operational resilience in their custody solutions.
Integrating compliance tools is a key feature of this platform. It supports on-chain monitoring and transaction analysis through partnerships with industry leaders such as Chainalysis and Notabene. These integrations enable clients to meet their anti-money laundering (AML) and know your transaction (KYT) obligations, facilitating regulatory compliance during inter-entity transfers.
Cactus Custody emphasizes operational flexibility, allowing users to select their preferred compliance tools. Clients can opt for Chainalysis for on-chain analysis or incorporate other service providers that align with their specific regulatory and operational requirements. This flexibility is designed to cater to a diverse range of institutional profiles without enforcing a rigid technology stack.
In December, Cactus Custody disclosed a strategic collaboration with an affiliate of Circle Internet Group, aimed at integrating USDC infrastructure. This integration streamlines the management of USDC-related operational flows within the custody system, further enhancing the platform”s capabilities.
According to Cactus Custody CEO Daniel Lee, the platform is crafted for institutions seeking self-custody solutions, allowing them to bypass centralized custody models. The primary aim is to deliver a solution that marries direct asset control with the robust security of MPC, all while maintaining compliance with international regulations.
With this launch, Cactus Custody positions itself at the forefront of the self-custody movement, melding security, compliance, and a focus on digital assets and stablecoins, all within an infrastructure designed to operate effectively at an institutional scale.
